In an economy, the value of inventories fell by $50 billion from year 1 to year 2. In calculating total investment for year 2, national income accountants would increase it by $50 billion.
Answer the following statement true (T) or false (F)
False
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Which one of the following statements is true?
a. Discount rates should always be set to zero to maximize efficiency b. Discount rates should be constant over time c. The use of discount rates will always maximize future benefits d. The use of discount rates becomes more problematic as longer time periods are considered e. High discount rates promote resource conservation
From 2007 to 2008, the Federal Reserve System reduced interest rates, the price that borrowers pay. As a result, economists expected that the supply of money would
a. increase. b. decrease. c. not change. d. Uncertain-economic theory has no answer to this question.
If velocity and output were nearly constant, then
a. the inflation rate would be much higher than the money supply growth rate. b. the inflation rate would be about the same as the money supply growth rate. c. the inflation rate would be much lower than the money supply growth rate. d. any of the above would be possible.
Full employment is estimated to occur at an unemployment rate
A. Between 10 and 12 percent. B. Equal to 0 percent. C. Between 1 and 2 percent. D. Between 4 and 6 percent.