Assume the economy is experiencing a recessionary gap. Keynesian economists would support which of the following policies:
a. Nonstabilization
b. Expansionary
c. Nonintervention
d. Fixed wage
b
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If a coupon bond has a "face value" of $1000, it means that
A) the original purchaser paid $1000 for it. B) each purchaser must pay $1000 for it. C) it was purchased for at least $1000 and perhaps more. D) the holder will be paid $1000 when the bond matures. E) the holder will be paid $1000 plus accumulated interest when the bond matures.
If a decrease in price of good X causes the demand curve for good Y to increase, then these two goods are:
a. normal goods. b. complementary goods. c. substitute goods. d. equilibrium goods. e. market-day goods.
An increase in buyers' incomes
a. increases the quantity demanded of a good b. decreases the quantity demanded of a good c. increases the demand for a normal good d. increases the demand for an inferior good e. decreases the quantity demanded of a normal good
A newspaper headline reads: "Fed Cuts Federal Funds Rate for Fifth Time This Year." This headline indicates that the Federal Reserve is most likely trying to:
a. Tighten monetary policy b. Raise interest rates c. Ease monetary policy d. Reduce inflation in the economy