Into which category of aggregate expenditure would each of the following transactions fall?
a. Sandra MacMillian purchases a new Ford Focus.
b. The city of Richardson buys 5 new garbage trucks.
c. Adrian Garcia buys a newly constructed townhome.
d. A consumer in Latvia orders an iPhone from Apple.
e. Ford Motor Company buys 300 new iPhones from Apple.
a. Consumption
b. Government purchases
c. Planned investment
d. Net exports
e. Planned investment
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The reserve ratio is 10 percent and all loan proceeds are deposited in transactions accounts. A bond dealer has $100 million in deposits, $8 million in vault cash, and $7 million in deposits at the Fed
The Fed sells $1 million in securities to the bond dealer. As a result, of this transaction alone A) the money supply falls by $1 million and total reserves rise by $1 million. B) the money supply falls by $1 million and total reserves fall by $1 million. C) the money supply rises by $1 million, total reserves fall by $900,000. D) the money supply rises by $1 million, but reserves do not change.
If firms have to spend money on creating and protecting their monopoly power, they're going to buy:
A. no monopoly power. B. more monopoly power than if it were free. C. less monopoly power than if it were free. D. the same monopoly power as if it were free.
When the housing price bubble burst, there were some obvious effects on the economy, and some that were not so obvious. Explain these.
What will be an ideal response?
Which of the following it NOT an important property of an economic model?
A. It is based on a theoretical construct. B. It predicts what would happen on average. C. It predicts actual results over half the time. D. It makes predictions that can be tested with data.