Which of the following will most likely occur during the contractionary phase of a business cycle?
a. Real GDP rises, and the unemployment rate falls.
b. Real GDP declines, and the rate of inflation rises.
c. The sales of most businesses decline, and the unemployment rate rises.
d. Inflation rises, and employment/population ratio falls.
C
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Which of the following areas of the world experienced virtually no change in its poverty rate from 1981 to 2010?
A. China B. South Asia C. India D. sub-Saharan Africa
An initial injection of money into the banking system will create new money supply through a sequence of excess reserves being transformed into loans. New money creation eventually ends because required reserves shrink loanable excess reserves in each round of new money creation
Indicate whether the statement is true or false
The monetarists think that the growth of the money supply should be approximately equal to the growth of ____________.
Fill in the blank(s) with the appropriate word(s).
The government is like a private borrower in that ________, but the government is NOT like a private borrower in that ________.
A. the government can simply increase its income to pay back debts; the government pays interest on debts B. the government does not pay interest on debts; the government can simply increase its income to pay back debts C. the government pays interest on debts; the government can simply increase its income to pay back debts D. the government can simply increase its income to pay back debts; the government does not pay interest on debts