The bank rate is the rate of interest at which
What will be an ideal response?
the Bank of Canada lends to chartered banks
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Which of the following statements is FALSE?
A) Transactions in which households buy final goods and services occur in the factor market. B) Saving is the difference between consumer income and expenditures. C) The value of total output is identical to total income. D) One definition of total income is that it is the annual cost of producing the entire output of final goods and services.
A price ceiling might be an appropriate government response to a
a. period of falling farm prices due to unusually good harvests b. substantial increase in farm productivity due to marked applications of new technology in agriculture c. national security crisis leading to major shortages of essential goods d. period of extraordinary large surpluses of farm goods e. good in which the demand is considerably less than the supply
Answer the following statements true (T) or false (F)
1. The revenue and protective purposes of a tariff are largely incompatible. 2. Tariffs bring about a transfer of income from the consumer of the protected product to domestic producers of the product. 3. For an anti dumping tariff to be imposed in the United States, competitive damage from dumping must be shown. 4. Perhaps the strongest argument for trade restrictions is that they protect U.S. workers from low-wage foreign workers. 5. During times of recession, retaining the domestic economy’s money at home is a valid argument for restricting imports.
If MPC = 0.9, equilibrium income is $1,000 . and full-employment income is $2,000 . then how much government spending is needed to bring about full employment?
a. +1,000 b. –100 c. +900 d. +100 e. –0.9