Keynes believed in all of the following, EXCEPT
A. The ideas of economists and political philosophers are more powerful than is commonly understood.
B. The problem with recessions was inadequate aggregate demand.
C. Say's Law.
D. There was absolutely nothing wrong with deficits during recessions and depressions.
C. Say's Law.
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The unemployment rate is the number of people unemployed divided by the
A) number of people employed, then multiplied by 100. B) working-age population, then multiplied by 100. C) labor force, then multiplied by 100. D) labor force participation rate, then multiplied by the population. E) population, then multiplied by 100.
A nation that currently has a surplus in its capital account is called a
A) debtor nation. B) net lender. C) net borrower. D) current account surplus nation. E) creditor nation.
Increases in the debt—GDP ratio are primarily caused by
A) a high growth rate of GDP. B) a high government deficit relative to GDP. C) increases in government borrowing through bonds. D) increases in interest rates.
Which asset is sometimes referred to as a bank's secondary reserves?
A) vault cash B) U.S. government securities C) repurchase agreements D) federal funds