Any target value of the nominal interest rate chosen by the Federal Reserve implies a specific value for ________.
A. potential output
B. the budget deficit
C. government purchases
D. the money supply
Answer: D
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The cyclically adjusted budget deficit calculates the budget surplus or deficit at
A) potential GDP. B) average GDP. C) real GDP. D) nominal GDP.
A hurricane destroyed the peach crop in South Carolina. Shortly thereafter the price of peaches rose significantly. These events suggest that a(n):
a. decrease in the supply of peaches caused the price of peaches to rise. b. increase in the supply of peaches caused the price of peaches to rise. c. increase in demand caused the price of peaches to rise. d. decrease in demand caused the price of peaches to rise.
When banks create money, they
a. increase wealth at a pace equal to the rate of money creation b. destroy wealth at a pace equal to the rate of money creation c. increase wealth at a rate exceeding the rate of money creation d. increase wealth at a rate less than the rate of money creation e. do not create wealth
Which of the following is one of the properties of muscles?
A. Excitability B. Antagonist C. Pronator D. Stability