If the interest rate is 7 percent, the value of $350 today after one year would be
A. $357.00.
B. $362.50.
C. $374.50.
D. $387.75.
Answer: C
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The Fed can attempt to increase the federal funds rate by
A) selling government bonds, which increases the money supply. B) selling government bonds, which decreases the money supply. C) buying government bonds, which increases the money supply. D) buying government bonds, which decreases the money supply.
Which of the following is the correct formula for computing GDP?
a. GDP = consumption + private investment + government spending + exports - imports b. GDP = consumption + public investment + government spending + exports - imports c. GDP = consumption + private investment + government spending - exports - imports d. GDP = consumption + private investment + government spending + transfers e. GDP = consumption + private investment + tax revenue + transfers
If we are currently at point T, we can get to point S in the long run
A. through economic growth over a period of years.
B. immediately by using resources more efficiently.
C. immediately by reducing the unemployment rate.
D. immediately through technological development.
The income-expenditure multiplier arises because one person's additional spending becomes another person's additional income that will generate additional:
A. menu costs. B. cyclical unemployment. C. autonomous expenditure. D. spending.