Refer to Table 7.1. In this simple economy, M2 equals
A) $4,800.
B) $6,400.
C) $9,200.
D) $16,800.
D
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If you have $1,000 and the Gross Domestic Product (GDP) deflator increases from 100 to 120, then
A) the $1,000 will buy 20 percent less of the goods and services produced by society. B) the $1,000 will buy 20 percent more of the goods and services produced by society. C) the value of the $1,000 increases. D) you will be able to buy fewer goods, but the real value of those goods will increase.
Which of the following is true of index numbers? a. Index numbers are always represented without units
b. The index number for a base year is always less than 100. c. Index numbers can never be more than 120. d. The index number for a year when subtracted from the base year index yields inflation.
The type of unemployment that occurs because of a recession is called:
A. frictional unemployment. B. seasonal unemployment. C. natural unemployment. D. cyclical unemployment.
The cost to a member bank of borrowing from the Federal Reserve is called the:
A. reserve requirement. B. price of securities in the open market. C. discount rate. D. yield on government bonds.