Which of the following would cause the money supply in the United States to expand?
a. A decrease in reserve requirements.
b. An increase in the discount rate.
c. The sale of U.S. government bonds by a Federal Reserve bank.
d. An increase in the world supply of gold.
a
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If the interest rate is 4 percent, the present value of $10,000 to be received one year from today is about
A) $9,246. B) $9,615. C) $10,816. D) $10,400.
When an expansionary fiscal policy increases market interest rates and lowers gross private investment in an economy, it is called the: a. countercyclical effect. b. policy lag effect
c. multiplier effect. d. crowding out effect.
Because the demand for wheat tends to be inelastic, the development of a new, more productive hybrid wheat would tend to
a. increase the total revenue of wheat farmers. b. decrease the total revenue of wheat farmers. c. decrease the demand for wheat. d. decrease the supply of wheat.
According to the text, is there any relationship between bureaucratic inefficiency and economic growth?
A) Yes, bureaucratic inefficiency and economic growth are positively related. B) No. Some nations' economies grow rapidly despite their inefficient governments while others collapse with inefficient governments. C) Yes, but only in the most economically developed nations. D) Yes, bureaucratic inefficiency and economic growth are inversely related.