If the U.S. government repaid its multitrillion debt by printing (i.e., creating) new money, the effect would be to:
a. Lower nominal interest rates.
b. Increase aggregate demand, reduce unemployment, and reduce the nation's price level.
c. Increase the real risk-free interest rate.
d. Wildly inflate prices.
.D
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Which of the following are included in the M2 definition of money?
A) currency outside of banks and checkable deposits B) currency outside of banks and credit lines on credit cards C) time deposits and the value of prime grade bonds D) currency both inside and outside of banks E) currency inside of banks and banks' reserves
The formula for aggregate expenditure is
A) AE = C + I + depreciation - NX. B) AE = C + I + G. C) AE = C + I + G - NX. D) AE = C + I + G + NX.
Federal government expenditures, as a percentage of GDP
A) rose from 1950 to 1991, fell from 1992 to 2001, and have risen from 2001 to the present. B) rose from 1950 to 1980, fell from 1981 to 2001, and have risen from 2001 to the present. C) have fallen since the early 1950s to the present. D) have risen since the early 1950s to the present. E) rose from 1950 to 2001 and then fell from 2001 to the present.
Which of the following is an example of a stock rather than a flow?
A. Ana collects $5,000 per month rent on her property that she leases. B. Brant mows 25 lawns per week. C. Connie earns $75,000 per year. D. Derek has $2,568 in his checking account.