"Fiscal Policy" is the federal government's plan for
a. international trade, designed to balance exports and imports.
b. spending and taxes, designed to influence the level of aggregate demand.
c. manipulating the money supply and the control of interest rates.
d. All of the above are correct.
b
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The primary function of the reserve requirements imposed by the Fed upon commercial banks is to
A) assure that Federal Reserve Banks will receive deposits with which they can purchase income-earning assets. B) enable the government to borrow in emergencies. C) protect the liquidity of the banking and monetary system. D) protect the solvency of the commercial banking system. E) serve as a control lever for central banking authorities.
If a 1 percent increase in price causes a 2 percent increase in quantity supplied, then supply is
A) elastic. B) inelastic. C) unit elastic. D) infinite.
According to Shepherd's study of U.S. industries, the share of effectively competitive industries reflected a sharp increase between 1958 and 2000
Indicate whether the statement is true or false
GDP measures:
A. expenditure on all final goods and services. B. total income of everyone in the economy. C. total value added by all firms in the economy. D. All of the answers are correct.