If a country has an expenditure multiplier of 10, the slope of its aggregate planned expenditure (AE) curve is
A) .90. B) 10.00. C) .50. D) .10. E) .80.
A
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Discuss studies based on the interest parity conditions
What will be an ideal response?
Open market purchase will result in:
A) increase in bank reserves and a decrease in the federal funds rate. B) increase in bank reserves and an increase in the federal funds rate. C) decrease in bank reserves and a decrease in the federal funds rate. D) decrease in bank reserves and an increase in the federal funds rate.
Since 1962, which of the following federal expenditures, measured as a percentage of GDP, has increased the most?
A) Social Security B) Medicare and Medicaid C) net interest D) defense
You have a bond that will pay you one hundred dollars one year from today. If the prevailing interest rate is r, the bond is currently worth
a. 100/r b. 100r c. 100/(1 + r) d. 100