Which of the following answer choices best describes a consumption expenditure category in the national income accounting?
A. Both new and used consumer goods
B. Consumer nondurable goods and services, but not consumer durable goods
C. Consumer durable and nondurable goods, but not services
D. Automobiles for personal use, but not newly constructed houses
Answer: D
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The IV regression assumptions include all of the following with the exception of
A) the error terms must be normally distributed. B) E(ui W1i,…, Wri) = 0. C) Large outliers are unlikely: the X's, W's, Z's, and Y's all have nonzero, finite fourth moments. D) (X1i,…, Xki, W1i,…,Wri, Z1i, … Zmi, Yi) are i.i.d. draws from their joint distribution.
We would expect the relationship between the risk spread on Baa bonds and U.S. Treasury securities of similar maturities to:
A. vary directly with economic growth. B. be uncorrelated with economic growth. C. vary inversely with economic growth. D. show no variation over the business cycle.
The change illustrated in the figure above is part of the transmission process of the Fed's monetary policy. As a result of the increase in the supply of loanable funds, aggregate demand ________, real GDP ________, and the price level ________
A) increases; decreases; falls B) decreases; decreases; falls C) increases; increases; rises D) increases; does not change; does not change E) None of the above answers is correct.
During the 1960s, most economists believed that expansionary macro-policy
a. that caused inflation would permanently reduce unemployment. b. that caused inflation would permanently increase unemployment. c. could not be utilized to reduce unemployment. d. did not affect inflation.