Which of these changes is likely to follow when the Fed purchases U.S. government securities?
a. Aggregate demand will decrease
b. The demand for financial securities will increase.
c. Rate of interest will increase.
d. Planned investment spending will increase.
e. Real GDP will decrease.
d
You might also like to view...
Would consumers benefit more from a tariff or a quota on imports?
What will be an ideal response?
A determinant of the supply of loanable funds is:
A. current economic conditions. B. expected profit on an investment. C. investors’ confidence. D. All of these are determinants of the supply of loanable funds.
Suppose the unemployment rate remained unchanged at 10 percent from 1999 through 2001 . We can conclude that
a. the same 10 percent of the people in the economy were out of work during the 1999–2001 period b. one of every 10 people in the labor force was unemployed during the 1999–2001 period c. the same 10 percent of the people in the labor force were out of work during the 1999–2001 period d. people in the labor force were out of work for 10 percent of the 1999–2001 period e. 10 percent of the people in the economy were out of work for 10 percent of the 1999–2001 period
Vertical equity states that taxpayers with a greater ability to pay taxes should
a. contribute a decreasing proportion of each increment in income to taxes. b. contribute a larger amount than those with a lesser ability to pay. c. be less subject to administrative burdens of a tax. d. be less subject to tax distortions that lead to deadweight losses.