Present consumption supported by large trade deficits may come at the expense of:
A. permanent debt to foreign interests.
B. permanent foreign ownership of formerly U.S.-owned assets.
C. large sacrifices of future consumption.
D. all of these.
D. all of these.
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The requirement that New York City taxi drivers own a "medallion" in order to operate a taxi in the city reduces competition and raises the fares that customers pay
a. True b. False
The group that sets the Federal Reserve Systems policy on buying and selling government securities (bills, notes, and bonds) is the:
A. Federal Deposit Insurance Corporation (FDIC). B. Federal Bond Sale Authority. C. Council of Economic Advisers. D. Federal Open Market Committee (FOMC).
In the short run, with predetermined prices, when output is greater than planned aggregate expenditure, firms will:
A. increase planned aggregate expenditure. B. increase production. C. decrease planned aggregate expenditure. D. reduce production.
Economic principles suggest that we should focus on balancing the budget rather than balancing aggregate supply and aggregate demand
a. True b. False Indicate whether the statement is true or false