If the government increases its spending but does NOT raise taxes
A. the government will have to raise expenditures or lower taxes the next year.
B. the government will have to borrow funds.
C. aggregate demand will increase without any effect on the price level.
D. the government will have to reduce the money supply.
Answer: B
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The Fed greatly increased the monetary base in 2009 and 2010 by purchasing assets in an attempt to boost the economy, while making it known that they intended on selling these assets once the economy showed signs of stability, and at the same time
keep a watchful eye on possible inflation. The Fed's inflation expectations would most likely be considered as ________, and the Fed was able to increase the monetary base without causing expected inflation to increase because their intentions and statements were generally considered ________. A) adaptive; not credible B) adaptive; credible C) rational; not credible D) rational; credible
Government intervention
a. provides incentives to conduct business in an illegal black market b. plays no role in generating wealth c. is the best way to eliminate poverty d. does not enforce property rights
If you compare the balance of payments accounts of Japan, China, Pakistan, and Romania, you may be surprised to see that they all
a. have the same exchange rates b. have current accounts that add up to zero c. have current accounts that add up to one d. add up to zero e. are recorded in U.S. dollars
In the United States, people that have few resources that are valued in the market due to either disability, discrimination, or poor health receive short-term public assistance. Specifically, the government gives some households ____________ .
Fill in the blank(s) with the appropriate word(s).