As the interest sensitivity of investment demand increases, the size of the crowding-out effect increases.
a. true
b. false
Ans: a. true
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Other things the same, if the Fed increases the quantity of money, the supply of money curve shifts
A) rightward and the nominal interest rate decreases. B) leftward and the real interest rate increases. C) leftward and the nominal interest rate increases. D) leftward and the nominal interest rate decreases. E) rightward and the real interest rate increases.
Over the past several decades, the United States has devoted a greater fraction of its resources to consumption than Hong Kong, which is why the U.S. economy grew faster than Hong Kong's economy
Indicate whether the statement is true or false
If you hear that unemployment decreased by 2 percentage points to 6 %in the past year, while the labor force participation rate remained constant, it means:
A. on a net basis, 2 out of every 10 people lost their job in the last year. B. on a net basis, 20 out of every 1,000 unemployed persons found a job in the last year. C. on a net basis, 2 out of every 100 people lost their job in the past year. D. on a net basis, 4 out of every 100 unemployed persons found a job in the last year.
Incomes policies are based on discretionary monetary and fiscal policies
a. True b. False Indicate whether the statement is true or false