What is the appropriate monetary policy response to a situation with deficient financial liquidity, when there is a liquidity trap?
A) an open market sale of government bonds
B) a decrease in the interest rate on reserves
C) an open market purchase of government bonds
D) an increase in the interest rate on reserves
D
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Inflation is generally the result of total spending growing faster than total production
Indicate whether the statement is true or false
GDP in an economy is $4,600 billion. Consumer expenditures are $3,500 billion, government purchases are $900 billion, and gross private domestic investment is $400 billion. Net exports are:
a. -$400 billion b. +$200 billion c. +$400 billion d. -$200 billion
A student athlete loves cookies. He receives 200 utils for the first cookie, an additional 160 for the second, an additional 120 for the third, another 80 for the fourth, and another 40 for the fifth. The marginal utility of the fourth cookie is ________ and the total utility of consuming four cookies is ________.
A. 40; 40 B. 80; 560 C. 40; 80 D. 80; 600
Which of the following would increase GNP in the United States?
A) an increase in the production of U.S.-owned General Motors cars made in Mexico B) an increase in the production of Japanese-owned Toyota cars in Mexico C) an increase in the production of Japanese-owned Toyota cars in the U.S. D) an increase in the production of Mexican-owned Grupo Minsa corn in the U.S.