It would be appropriate to use expansionary fiscal policy during prolonged periods of
A. high inflation.
B. rapid economic growth.
C. high unemployment.
D. high budget deficits.
Answer: C
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Which of the following are reasons why U.S. residents supply dollars to the foreign exchange market?
i. to buy U.S. exports ii. to buy foreign real estate iii. to buy foreign bonds A) i only B) ii only C) iii only D) i and iii E) ii and iii
The number of job seekers in any sector of the economy ordinarily exceeds, by at least a small amount, the number of jobs available. Thus, employers
A) could increase their net revenue by lowering wages. B) could increase their net revenue by raising wages. C) do not pay close attention to marginal cost and marginal revenue in setting wages. D) face the threat of unionization. E) want employees to value their current jobs significantly more highly than they value alternative jobs.
"Any additional increases in government spending should be for defense," is ________ statement about ________ policy.
A. positive; monetary B. normative; monetary C. positive; fiscal D. normative; fiscal
Using the Rule of 72, how long will it take something growing at 1% per year to double?
A. 720 years B. 50 years C. 72 years D. 100 years