Figure 4.3 illustrates the demand for tacos. An increase in price of tacos would bring about a movement from
A) point a to point c. B) point c to point a. C) D2 to D0. D) D0 to D1.
B
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Government expenditures are larger than government outlays
a. True b. False
Wanda Weeks is tired of running her small machine tool company. She wishes to sell it in order to use her time and money elsewhere. She is currently earning a salary of $85,000 per year and a 10 percent return on her capital investment. She wants to take a job in a bank and invest her capital in a mutual fund. What issues should she look at before making the decision to change careers?
What will be an ideal response?
The ways the Fed can inject reserves into the banking system include:
A. making loans to non-bank corporations. B. increasing the discount rate. C. an increase in the size of the Fed's balance sheet through selling securities. D. an increase in the size of the Fed's balance sheet through purchasing securities.
Based on the Saving-Investment Diagram, if the world real interest rate declines from A to C, then the change in net exports is measured by the difference between values ________
A) G and E B) H and G plus E and D C) H and G minus E and D D) G and F plus F and E E) none of the above