If total planned spending (E(p)) exceeds GDP, we expect that
A) inventories will be falling.
B) inventories will be rising.
C) GDP will be falling.
D) government expenditures must be rising.
A
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Recycling efforts such as those exemplified by BMW's Design for Disassembly (DFD) program
a. permanently diminish the flow of residuals back to nature b. are not represented in the materials balance model c. represent short-term conversion of residuals into recycled materials or goods d. reduce the amount of wastes returned to nature in the long-run
The nominal interest rate is 7%, today's price level is 150, and you expect the price level to be 156 one year from now. What is the expected inflation rate? What is the expected real interest rate?
What will be an ideal response?
What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?
a. The supply of and demand for loanable funds would shift right. b. The supply of and demand for loanable funds would shift left. c. The supply of loanable funds would shift right and the demand for loanable funds would shift left. d. None of the above is correct.
Any target value of the nominal interest rate chosen by the Federal Reserve implies a specific value for:
A. potential output. B. government purchases. C. the budget deficit. D. the money supply.