A spike in "All Other Outlays" of the federal government in 2009 was due to:
a. an increase in the financial aid given to Greece earlier that year
b. an increase in the expenditures on Social Security and Medicare.
c. the fiscal stimulus package passed earlier that year.
d. a sudden increase in military expenditure as a result of the war in Iraq.
e. an increase in the national debt earlier that year.
c
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Industrial production, total sales, nonfarm employment, and after-tax household income are examples of ________ indicators of economic activity.
A. coincident B. real C. preceding D. lagged
In the past two decades the United States lost its comparative advantage in automobiles to Japan. What factor was most responsible for the development of Japan's comparative advantage in automobiles?
A) Japan has abundant supplies of natural resources needed to produce automobiles. B) Japanese firms benefited from external economies. C) Japanese firms excelled in process technology. D) Japan has abundant supplies of labor.
Which of the following is an example of a managed float?
a. The Fed buys or sells U.S. dollars in order to maintain a fixed $1.05 per euro exchange rate. b. The European Central Bank buys or sells euros in order to "peg" the price level. c. The Bank of England buys or sells British pounds in order to maintain a fixed exchange rate with the U.S. dollar. d. The Bank of Japan intervenes in the foreign exchange market to prevent a rapid depreciation of the yen. e. The Bank of Japan intervenes to set the tax rate very close to the tax rates of other countries.
When the Fed decreases the discount rate, it makes it easier for banks
a. to decrease their reserves by borrowing from the Fed, causing the money supply to shrink b. to increase their reserves by borrowing from the Fed, causing the money supply to grow c. to protect against the inevitable accompanying increase in the legal reserve requirement d. to convert its loans into deposits e. to write off its obligations to the Fed