An easing of monetary policy should:
A. increase investment and household spending but lower net exports.
B. increase spending by households and businesses and increase net exports.
C. raise net exports but lower spending by households and businesses.
D. decrease spending by households and businesses as well as net exports.
Answer: B
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From the early 1860s to the early 1900s, the amount of land acquired by sales (including from railroads and states) was _____ land obtained free through homesteading
a. roughly half as much as b. about the same as c. twice as much as d. triple the amount of
If banks have $10 million in legal reserves, $70 million in check able deposits, and a reserve requirement of 10 percent, they can still expand the money supply by
a. $10 million. b. $20 million. c. $30 million. d. $50 million.
Attempts to use activist policies to stabilize the economy can be counter-productive: a. If policy makers do not correctly estimate the natural rate of real output. b. If policy makers misestimate the lags involved in the process
c. If policy makers forecast inaccurately. d. In all of the above cases.
When oligopolists make joint decisions concerning their prices and output levels, they are
a. a natural oligopoly b. colluding c. a duopoly d. a homogeneous oligopoly e. practicing bilateralism