scarcity
What will be an ideal response?
the gap between what people want and the resources available to meet those wants
(Scarcity = wants > available resources)
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If the Fed conducts an open market purchase of Treasury bonds, this will
A) encourage banks to make more loans and will increase the money supply. B) encourage banks to make more loans and will decrease the money supply. C) cause banks to reduce their loans and will increase the money supply. D) cause banks to reduce their loans and will decrease the money supply.
Saving is a leakage from the circular flow. Why didn't the classical economists think saving might cause consumption expenditures to fall short of total output?
What will be an ideal response?
As global financial markets become more intertwined, the Fed has
A) less control over monetary policy. B) more control over monetary policy. C) more control over fiscal policy. D) less control over fiscal policy.
In the business cycle, a trough marks the end of a(n) _____ and the beginning of a new _____
a. contraction; expansion b. peak; expansion c. expansion; contraction d. peak; contraction e. expansion; peak