In the 1990s, the United States eliminated its budget deficit and expanded the money supply. This should have led to
A. lower real interest rates and a depreciation of the dollar.
B. lower real interest rates and an appreciation of the dollar.
C. higher real interest rates and a depreciation of the dollar.
D. higher real interest rates and an appreciation of the dollar.
Answer: A
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The neoclassical growth theory says, in part, that
A) a population explosion driven by economic growth will end economic growth. B) technological change leads to economic growth. C) the differences in nation's growth rates will persist indefinitely. D) technology does not play a role in economic growth.
Refer to Figure 4-11. What is the value of the deadweight loss after the imposition of the price floor?
A) $600 B) $1,800 C) $2,700 D) $3,300
If education creates external benefits,
a. actual market outcomes provide less than the efficient quantity of education. b. actual market outcomes provide more than the efficient quantity of education. c. actual market outcomes provide a higher price than the efficient price of education. d. the government should impose a depletion tax.
If the economy is in short-run disequilibrium, an economist following classical theory would advocate that the Federal Reserve make appropriate changes in the:
a. federal funds rate. b. reserve requirement. c. none of these choices. d. money supply.