Bill spent $15,000 to buy equipment for his paper-cup manufacturing plant. According to an economist, the amount spent by Bill is: a consumption expenditure.a consumption expenditure.
a. a saving
b. an investment.
c. a tax to the government.
d. a consumption expenditure.
b
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An increase in the money supply will immediately __________ the __________ interest rate, according to the "liquidity effect."
A) raise; natural B) raise; nominal C) lower; natural D) lower; nominal
Responsibility for developing the President's budget lies with _____
a. the Congressional Budget Office b. the Treasury Department c. the Council of Economic Advisers d. the Office of Management and Budget
Potential output is the amount produced when: a. firms' and workers' expectations about the price level are realized
b. the actual price level is higher than the price level expected by workers. c. firms and workers have the same expectations about the price level. d. the actual price level remains constant. e. the actual price level is lower than the price level expected by firms.
Refer to the figure. If the Federal funds market is at equilibrium at point C and the Federal Reserve decides to conduct an open-market sale, then it must be trying to set a:
A. Higher target federal funds rate by increasing the amount of reserves in the market B. Higher target federal funds rate by reducing the amount of reserves in the market C. Lower target federal funds rate by increasing the amount of reserves in the market D. Lower target federal funds rate by reducing the amount of reserves in the market