To fight recession, the government may
a. decrease aggregate demand, which will also lead to lower unemployment rates.
b. increase aggregate demand, which will also lead to higher price levels.
c. increase aggregate demand, which will also lead to lower price levels.
d. decrease aggregate demand, which will also lead to higher unemployment rates.
b
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The Fed's purchase of government securities could
A) increase loans made by banks. B) be an effective anti-inflationary policy. C) decrease the price level and have no effect on real GDP. D) decrease bank reserves.
In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?
A) Figure A B) Figure B C) Figure C D) both Figure A and Figure C
In the money market, an excess demand of money will:
A) increase the supply of bonds, increase bond prices, and decrease interest rates. B) increase the supply of bonds, decrease bond prices, and decrease interest rates. C) increase the supply of bonds, increase bonds prices, and increase interest rates. D) increase the supply of bonds, decrease bond prices, and increase interest rates.
An example of a fungible commodity is:
A. oil. B. gold. C. aluminum. D. All of these are fungible commodities.