The problem typically during a recession is not that there is too little money, but too little spending. If the problem was too little money, what would be its cause? If the problem was too little spending, what could be its cause?
What will be an ideal response?
Too little money would be caused by too small of a money supply by the Federal Reserve. Too little spending could be caused by a variety of reasons such as a decrease in consumption spending by households because they become pessimistic about the future, a decrease in investment spending by firms because they lower their estimates of the future profitability of new factories and machinery, or a decrease in U.S. exports because a major trading partner is in a recession.
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Which of the following statement is FALSE?
a) Imports and exports account for over one-half of the GDP of the Netherlands. b) Japan is less dependent on foreign trade than is the United States. c) Because the cost of labor used on farms is so high, the United States exports very little of its wheat, rice, and corn crops. d) China is the leading exporting country, accounting for 12.1 percent of total world exports.
What caused the major economic conflict between the North and the South immediately before the outbreak of the Civil War?
A. Agricultural development. B. Industrialization in the North. C. Trade barriers with England. D. All of the choices are true.
The overall productivity crisis of the 1970s can be attributed, in part, to insufficient investment in research and development
Indicate whether the statement is true or false
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. If the market maker makes three transactions, what is his bid-ask spread per unit
a. $4 b. $5 c. $6 d. $7