If the economy is suffering from an inflationary gap, the Federal Reserve will engage in what type of policy?
a. expansionary fiscal policy
b. contractionary fiscal policy
c. expansionary monetary policy
d. contractionary monetary policy
d. contractionary monetary policy
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In the long run, total spending only influences:
A. potential output. B. actual output. C. productive capacity. D. inflation.
The data in the table above are the U.S. balance of payments. The sum of the current account plus capital and financial account plus official settlements account is equal to
A) $0. B) -$335 billion. C) $140 billion. D) -$60 billion.
Tabitha shares a flea market booth with her sister. Her share of the rent is $150 per month. She is considering moving to her own, larger booth which she will not have to share with anyone. The larger booth rents for $450 per month
Recently, you ran into Tabitha in the grocery store and she tells you that she has rented the larger booth. Tabitha is as rational as any other person. As an economics major, you rightly conclude that A) Tabitha figures that the additional benefit of having her own booth (as opposed to sharing) is at least $300. B) Tabitha did not have a choice; her sister was overcharging her. C) the cost of having one's own booth outweighs the benefits. D) Tabitha figures that the additional benefit of having her own booth (as opposed to sharing) is at least $450.
Using the one-period valuation model, assuming a year-end dividend of $0.11, an expected sales price of $110, and a required rate of return of 10%, the current price of the stock would be
A) $110.11. B) $121.12. C) $100.10. D) $100.11