Which of the following scenarios shows a benefit of international trade?
a. Edie was able to buy durian from Thailand at a fruit stand in New York City year round.
b. The latest film in a superhero series was the top box office draw in the country last week.
c. After the knitting factory closed, the building was converted into modern loft apartments.
d. Preeti earned about a third of what her U.S. counterpart earned per hour for the same work.
a. Edie was able to buy durian from Thailand at a fruit stand in New York City year round.
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An open market purchase of government securities by the Fed will cause which of the following?
A) an excess quantity of reserves supplied and a reduction in the federal funds rate B) an excess quantity of reserves demanded and an increase in the federal funds rate C) an excess quantity of reserves demanded and a reduction in the federal funds rate D) an excess quantity of reserves supplied and an increase in the federal funds rate
Unplanned inventory depletion occurs when real GDP is above its equilibrium level
a. True b. False Indicate whether the statement is true or false
Which of the following lies primarily within the realm of microeconomics?
a. an empirical analysis of the relationship between the growth of the money supply and the rate of inflation b. an economic model forecasting the impact of a tax increase on consumer spending and national output c. a study of supply and demand conditions in the market for orange juice d. a model forecasting the impact of a change in interest rates on the level of investment in the economy
Which of the following factors substantially reduces the effectiveness of discretionary changes in tax rates or government expenditures as a stabilization tool?
a. Even though computer models have enhanced our forecasting ability, policy makers at the Federal Reserve have been reluctant to utilize information supplied by the models. b. When fiscal policy is altered, the Fed generally shifts monetary policy in a manner that offsets the impact of the fiscal action. c. Changes in government expenditures and taxes are always offset by equal changes in private spending. d. Since it takes time for fiscal policy to work and since the future is difficult to forecast, it is difficult to time fiscal policy changes correctly.