On the 4 degree line diagram, for points that lie below the 45 degree line
What will be an ideal response?
planned aggregate expenditure is less than GDP
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What is meant by senior debt?
A) debt that has been around for the longest period of time B) debt that must be paid before junior debt is paid C) debt owed to the federal government D) debt issued by the federal government as opposed to states or corporations
The price of a coupon bond can best be described as the:
A. future value of the coupon payments. B. present value of the face value plus the present value of the coupon payments. C. future value of the coupon payments and the face value. D. present value of the face value.
For this question, assume that individuals hold both currency and checkable deposits. The money multiplier is equal to
A) 1/c. B) 1/[c + ?(1 - c)]. C) [c + ?(1 - c)]. D) 1/?. E) 1/(1-c)
Most economists believe that fiscal policy is:
A. Better than monetary policy for "fine-tuning" the economy B. Better than monetary policy for month-to-month stabilization C. Not as good as monetary policy for month-to-month stabilization D. Not very good at pushing the economy in a particular direction