The government expenditure multiplier is used to determine the
A) amount aggregate supply is affected by a change in government expenditure.
B) amount aggregate demand is affected by a change in government expenditure.
C) extra scrutiny government action receives.
D) amount private consumption is decreased by government expenditure.
E) extent to which automatic stabilizers must be changed in order to avoid recessions.
B
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Monetary policy is ________ flexible than fiscal policy because monetary policy changes are made by ________, while fiscal policy changes must be made by ________.
A. more; the President; legislative action B. more; legislative action; the FOMC C. more; the FOMC; legislative action D. less; the FOMC; the President
Economic theory in general, and trade theory in particular are replete with equivalencies
For example, it is argued that for any specific tariff one can find an equivalent ad valorem tariff; and that for any quota one can calculate a tariff equivalent. Discuss conditions or situations under which a specific and an ad valorem tariff are not equivalent. Discuss conditions or situations when a tariff and a quota are not equivalent.
A Federal Reserve repurchase agreement involves
A) an agreement by a bank to repay a discount loan on a specific day. B) an agreement by a dealer to buy back securities she has sold to the Fed. C) an agreement between the Fed and the Treasury for the Fed to purchase a specified amount of Treasury securities. D) an agreement by a commercial bank to make a loan to another bank in the federal funds market.
The price system works in an economy on a day-to-day basis to match the desires of consumers with the output from producers.
Answer the following statement true (T) or false (F)