If government spending is used to bolster the level of economic activity, the type of financing available to the U.S. government that would increase aggregate spending the most is
a. taxation.
b. borrowing from the public.
c. borrowing from banks.
d. printing money.
c. borrowing from banks.
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Using the data in the above table, if the firm employs 5 workers, total product (measured in units per day) and average product and marginal product of the fifth worker (measured in units per worker) are
A) 23, 5.00, and 4 respectively. B) 23, 5.75, and 4 respectively. C) 25, 5.00, and 2 respectively. D) 25, 5.75, and 4 respectively.
An example of a commitment device for Jane, who says she really wants to save more would be:
A. an agreement that she give any new clothes, jewelry, or makeup purchases to her best friend, and Jane is not allowed to borrow them. B. a commitment to only buy things on sale. C. a decision to cook her own food and not order take-out or delivery food unless she is too busy. D. buying a piggy bank to store savings.
Potential GDP is an estimate of the economy's ability to produce goods and services if the
a. labor force is fully employed. b. price level is stable. c. trade balance is zero. d. federal budget is balanced.
As a portion of total assets measured in billions of dollars, the least important asset on the Fed's balance sheet is:
A. loans. B. foreign exchange reserves. C. securities. D. gold.