Contractionary fiscal policy:
What will be an ideal response?
: reductions in government spending or transfer payments or increases in taxes, leading to a lower level of economic activity (chapter 10 page 236)
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During this year, a country reports imports of $1,000 billion, exports of $1,100 billion, foreign investment in the country of $900 billion, investment abroad of $1,200 billion, net interest and net transfers of zero
What is the country's current account balance?
A bank will be able to make fewer loans if it
a. sells bonds to the Fed b. calls in loans c. increases loans from excess reserves d. borrows money in the federal funds market e. buys bonds from the Fed
According to the representative heuristic, people will tend to think that Karen is a vegetarian if:
A. they have just read a book about vegetarians. B. Karen has many of the characteristics of a stereotypical vegetarian. C. if the fraction of vegetarians in the population is increasing. D. they themselves are vegetarians.
What is a marginal cost?
What will be an ideal response?