If the Federal Reserve raises the discount rate, banks will be inclined to borrow additional reserves and the money supply will increase.
Answer the following statement true (T) or false (F)
False
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A nation joining a currency union must subject itself to the ______ policies of the union, which may or may not conform to its own objectives or economic or political values.
A) fiscal B) economic C) monetary D) accounting
Expansionary fiscal policy involves
A) increasing government purchases or decreasing taxes. B) increasing taxes or decreasing government purchases. C) increasing the money supply and decreasing interest rates. D) decreasing the money supply and increasing interest rates.
Other things equal, an improvement in the expected rate of net profit would:
A. Reduce the price level and unemployment B. Decrease the interest rate and cause aggregate demand to increase C. Increase consumption and net exports, causing aggregate demand to shift rightwards D. Increase investment spending, real GDP, and the price level
How can a nation and its producers determine whether or not it has a comparative advantage in producing a particular good or service?
What will be an ideal response?