Refer to the above figure. The equilibrium level of real Gross Domestic Product (GDP) is
A) $6 trillion.
B) $7 trillion.
C) $12 trillion.
D) $20 trillion.
C
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If the home currency has a real depreciation, what is the situation?
A) it takes more home goods to purchase the same quantity of foreign goods B) it take fewer home goods to purchase the same quantity of foreign goods C) the nominal exchange rate must have risen D) the nominal exchange rate must have fallen
When the Federal Reserve reduces its target rate of inflation, it will set a ________ real interest rate at every inflation rate and the aggregate demand curve will ________.
A. lower; shift to the right B. higher; shift to the left C. lower; shift to the left D. higher; shift to the right
Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 5 percent, an initial deposit of $10,000 will lead to a total increase in deposits of:
A. $500. B. $10,000. C. $50,000. D. $200,000.
Income in kind is defined as
A. income received in the form of goods and services. B. income received in the form of a paycheck. C. tips. D. payment for services in the form of cash.