Suppose that the bond market and the money market both start out in equilibrium, then the Federal Reserve increases the money supply. The result will be a ______________ in the money market and a _________________ in the bond market, which will push bond prices _________________ and interest rates will ___________________ until a new equilibrium is reached
A) surplus; shortage; up; fall
B) shortage; surplus; down; rise
C) surplus; shortage; down; rise
D) shortage; surplus; down; fall
A
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Refer to Scenario 19-1. The value added of CANOES-R-US for each canoe equals
A) $1,200. B) $800. C) $500. D) $400.
Frictional unemployment is joblessness
a. related to changes in weather and similar factors b. arising from a mismatch between available jobs and workers' skills c. resulting from macroeconomic fluctuations d. that is short-term and is experienced by people who are between jobs e. that is caused by structural changes in the economy
An increase in government purchases will
A) increase public saving. B) increase the supply of loanable funds. C) reduce investment. D) reduce real GDP.
In the above table, saving must be
A) -$300 billion. B) $300 billion. C) $400 billion. D) -$400 billion.