Which of the following statements is correct?
A. An increase in exports and an increase in imports will both tend to decrease the equilibrium real GDP.
B. An increase in exports and an increase in imports will both tend to increase the equilibrium real GDP.
C. An increase in exports will tend to decrease, and an increase in imports will tend to increase, the equilibrium real GDP.
D. An increase in exports will tend to increase, and an increase in imports will tend to decrease, the equilibrium real GDP.
Answer: D
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Suppose a person cashes his payroll check and holds all the funds in the form of currency. Everything else held constant, total reserves in the banking system ________ and the monetary base ________
A) remain unchanged; increases B) decrease; increases C) decrease; remains unchanged D) decrease; decreases
Market work includes activities such as
a. practicing your golf game b. studying for an economics exam c. teaching a college economics course d. picking up empty cans for the bottle deposit e. picking strawberries for your own use
A well-run bank assumes that all borrowers will repay their loans on time, irrespective of the condition of the economy
a. True b. False Indicate whether the statement is true or false
When government debt is financed internally, future generations will
a. inherit a higher tax liability without additional interest income. b. inherit neither higher taxes nor additional interest income. c. inherit both higher taxes and additional interest income. d. receive lower interest income and a lower tax liability.