"Budget deficits are inflationary." The truth of this statement depends on
a. aggregate demand in the economy.
b. the shape of the aggregate supply curve.
c. the size of the national debt.
d. existing debt as a percentage of GDP.
b
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The factors of production include
A) capital. B) investment. C) transfers. D) wages.
A single commercial bank must meet a 25% reserve requirement. If it initially has no excess reserves and then $2,000 in cash is deposited in the bank, it can increase its loans by a maximum of
A. $1,500. B. $1,750. C. $1,250. D. $2,000.
Suppose that the nominal quantity of money is $200 billion and the value of nominal GDP is $1 trillion. It must be the case that
A) the economy is suffering from inflation. B) the average price paid for a "typical" good is $5. C) there will be a shortage of money balances in the economy. D) the velocity of circulation is 5.
Who bears the costs of a program to control rents at a maximum level?
A) landlords or owners of housing units B) consumers who face difficulty moving to a more suitable apartment C) homeless who cannot find rental units D) all of these