Suppose the government runs a budget surplus in a given year. It can reduce its overall federal debt by
A) not buying anything on credit. B) forcing a change in net exports.
C) increasing taxes on luxury items. D) buying back bonds it sold to the public.
D
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In some areas, local appraisers have formed ________________________.
Fill in the blank(s) with the appropriate word(s).
Real GDP would increase by 3 percent if nominal GDP increased by:
A. 2 percent and inflation increased by 1.5 percent. B. 5 percent and inflation increased by 2 percent. C. 1 percent and inflation increased by 2 percent. D. 6 percent and inflation increased by 2 percent.
The money multiplier is
A) Assures that excess reserves will be driven to zero. B) The number of times GDP can be increased by expansion of the money supply. C) Is equal to the fractional reserve requirement ratio times total reserves. D) None of the above.
“Monopolistic firms will always be against regulation.” Evaluate
What will be an ideal response?