After World War II (1941–45), the U.S. public debt
(a) remained unchanged in 1947 even though the government ran a budget
surplus (government expenditures fell below revenues in 1947).
(b) continued to rise even though the government ran a budget surplus at times.
(c) decreased even though the government ran a budget surplus continuously.
(d) remained high while the government continuously ran deficits.
(b)
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When a rent ceiling law is passed in a city, which of the following occurs?
A) The total price of renting an apartment decreases to all renters. B) The quantity of apartments supplied does not change. C) Some landlords and renters use methods such as "key money" to get around the rent ceiling law. D) Renters have no trouble finding a nice, reasonably priced apartment to rent. E) Generally the number of renters in the city increases because people move to the city to take advantage of the low-rent apartments.
Suppose an economy's exchange rate system is the gold standard and vast tracks of gold are discovered, as is what happened in the United States in 1849. If the economy is at full employment, what should this discovery do?
A) It should lower the money supply and cause deflation. B) It should raise the money supply and cause inflation. C) It should raise the money supply and cause disinflation. D) It should raise the money supply but have no impact on the price level. E) it should not change the money supply.
Suppose there are two firms, Boors and Cudweiser, each selling nonalcoholic beer. Suppose Boors and Cudweiser are not viewed as perfect substitutes but rather demand for Boors is QB = 5000 ? 1000PB + 100PC and demand for Cudweiser is QC = 3000 ? 1500PC + 100PB. For simplicity, assume zero marginal costs. Which is the more preferred beer?
a. Boor's b. Cudweiser c. they are equally preferred d. neither are preferred
If GDP is $9,000 billion and the money supply is $1,800 billion, velocity is approximately
A) 0.20. B) 6.00. C) 4.15. D) 5.00. E) There is not enough information provided to answer this question.