To reduce the effects of crowding out caused by an increase in government expenditures, the Federal Reserve could
a. increase the money supply by buying bonds.
b. increase the money supply by selling bonds.
c. decrease the money supply by buying bonds.
d. increase the money supply by selling bonds.
a
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Inflation:
a. Never hurts the economy. b. Only hurts the economy as a whole when it is not expected. c. Never redistributes income and wealth. d. Hurts the economy when incentives are affected.
Which of the following effects helps to explain the slope of the aggregate-demand curve?
a. the exchange-rate effect b. the wealth effect c. the interest-rate effect d. All of the above are correct.
The Least Absolute Deviations (LAD) estimators in a linear model minimize the sum of squared residuals.
Answer the following statement true (T) or false (F)
Refer to the table. Suppose that Libra decided to import more U.S. products. We would expect the quantity of libras:
Answer the question on the basis of the following table, which indicates the dollar price of libras, the currency used in the hypothetical nation of Libra. Assume that a system of freely floating exchange rates is in place.
A. demanded at each dollar price to rise and the dollar to depreciate relative to the libra.
B. demanded at each dollar price to fall and the dollar to appreciate relative to the libra.
C. supplied at each dollar price to rise and the dollar to appreciate relative to the libra.
D. supplied at each dollar price to fall and the dollar to depreciate relative to the libra.