Suppose the central bank of a country increases the discount rate from 5 percent to 7 percent. The demand for money remaining unchanged, this is likely to _____ in the country
a. increase the money supply
b. decrease interest rates
c. leave the interest rates unchanged
d. increase interest rates
d
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International economics ________ use the same fundamental methods of analysis as other branches of economics, because ________
A) does not, the level of complexity of international issues is unique B) does not, the interactions associated with international economic relations is highly mathematical C) does not, international economics takes a different perspective on economic issues D) does not, international economic policy requires cooperation with other countries E) does, the motives and behavior of individuals are the same in international trade as they are in domestic transactions
Which of the following is true of an annually balanced federal budget? a. Most economists agree that the federal government should balance its budget just as each household does. b. Such a policy would require the government to increase its spending when tax receipts decrease
c. Such a policy became popular between the 1930s and 1960s. d. Such a policy guarantees that the economy is its potential level. e. Such a policy could worsen a contractionary gap.
From the time of Benjamin Franklin to the present, the percentage of the average American's income that goes to pay taxes has
a. decreased from about 20 percent to about 10 percent. b. remained constant at about 10 percent. c. has risen from less than 2 percent to about 33.3 percent. d. has risen from less than 5 percent to about 25 percent.
The unemployment rate is supposed to measure ________. It is an imperfect measure because ________.
A) the percentage of the working-age population who are unemployed; it is impossible to count everyone in the working-age population B) the underutilization of labour resources; it excludes some underutilized labour and some unemployment is unavoidable C) the percentage of the labour force who are unemployed; it is impossible to count everyone in the labour force D) the number of unemployed plus the number of marginally attached workers expressed as a percentage of the labour force; it excludes the marginally attached workers because Statistics Canada considers them as employed E) the underutilization of labour resources; it includes part-time workers and excludes discouraged workers