Inventories are
A. goods that have not been purchased but have been produced during the current year.
B. consumer expenditures.
C. part of the debt surplus.
D. part of next exports.
Answer: A
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Using the figure above, show the effect on the real interest rate and the quantity of loanable funds of an increase in expected profit
What will be an ideal response?
Based on the data in this table,
U ? ? period 1 6 1 4 period 2 8 0 3.2 period 3 8 2 4.4 If the natural rate of unemployment is steady at 7 percent, and, in period four, there is no price shock and unemployment is 8 percent, then the inflation rate in period 4 will be ________ percent. A) 4.4 B) 3.6 C) 3.4 D) 1.6 E) none of the above
In monopolistically competitive markets
A) price is greater than it would be in perfect competition. B) price is less than it would be in perfect monopoly. C) quantity is greater than it would be in perfect monopoly. D) All of the above.
Suppose that the Fed undertakes an open market sale, selling $1 million worth of securities to a bank. If the required reserve ratio is 8%, checkable deposits (or the money supply), would _______________ by ________________ million, assuming that there are no cash leakages and that banks hold zero excess reserves
A) rise; $12.5 B) decline; $8 C) decline; $12.5 D) rise; $8