Refer to the scenario above. The principal in this case is ________
A) $10
B) $300
C) $3,000
D) $3,300
C
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Assume a money multiplier of 3. If the Treasury finances a $30 million expenditure by selling securities to the Fed, the effect of this transaction on the money supply is that it will
A) remain unchanged. B) rise by $3 million. C) rise by $30 million. D) rise by $90 million.
Which of the following can the government not use directly to control the economy?
a) Pay rates within the private sector b) Pay rates in the public sector c) Investment in state education d) Benefits available for the unemployed and sick
The optimal mix of output may not be produced by an economy because of the existence of
A. Inequity. B. Production possibilities. C. Internalities. D. Underproduction of public goods.
Under international trade we export those goods for which we have a relatively low
A. materials cost. B. wage cost. C. accounting cost. D. opportunity cost.