The ratio of government debt to GDP since 1940 indicates that the U.S. has mostly been:
a. a net creditor by at least 20% of the value it produces each year.
b. a net creditor by at least 10% of the value it produces each year.
c. a net borrower by at least 20% of the value it produces each year.
d. a net borrower by at least 40% of the value it produces each year.
c
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How does a production quota influence farm prices and output?
What will be an ideal response?
Identify the correct statement
a. The removal of financial market regulations has lowered the probability of a financial crisis to zero. b. Investment in residential housing in the U.S. was less volatile during the era prior to the removal of Regulation Q. c. Investment in residential housing in the U.S. was more volatile after the removal of Regulation Q. d. The removal of financial market regulations lowered output volatility. e. The removal of financial market regulations increased variability in consumer spending.
There is an adverse supply shock. In response the Federal Reserve pursues an expansionary monetary policy. Taking into account both the shock and the Federal Reserve's policy, which of the following are we sure of?
a. unemployment will be higher b. unemployment will be lower c. inflation will be higher d. inflation will be lower
In the production function Real GDP = T (L, K), the T represents the tax coefficient
Indicate whether the statement is true or false