When the U.S. Treasury purchases gold and then replenishes its deposit in the Fed the effect is that __________ and __________
A) reserves increase; gold certificates increase
B) reserves decrease; gold certificates increase
C) gold certificates increase; Treasury deposits increase
D) gold owned by the Fed increases; Treasury deposits increase
C
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Bob just got laid off and now has no income. We can assume that his demand for all:
A. all normal goods will increase. B. all inferior goods will increase. C. all inferior goods will decrease. D. all normal goods will stay the same.
Monetary neutrality means that a change in the money supply
a. does not change real GDP. Most economists think this is a good description of the economy in the short run and in the long run. b. does not change real GDP. Most economists think this is a good description of the economy in the long run but not the short run. c. does change real GDP. Most economists think this is a good description of the economy in the short-run and the long run. d. does change real GDP. Most economists think this is a good description of the economy in the long run but not the short run.
According to the crowding-out view, budget deficits will:
A. reduce interest rates. B. increase interest rates and retard private investment. C. reduce the investments of foreigners in the United States. D. increase the capital stock available to future generations.
Which of the following industries most closely approximates pure competition?
A. Agriculture. B. Farm implements. C. Clothing. D. Steel.