Prior to 1973, the world operated on a system of fixed exchange rates called the Bretton Woods system
a. True
b. False
Indicate whether the statement is true or false
True
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An increase in government purchases or a decrease in taxes, other things being equal, will tend to:
a. increase interest rates and decrease investment. b. increase interest rates and increase investment. c. decrease interest rates and decrease investment. d. decrease interest rates and increase investment.
If the money wealth, interest rate, and international effects increase the quantity of aggregate demand by 2 percent when the price falls by 2 percent and the multiplier is 4, then the slope of the aggregate demand curve is:
A. ?1/4. B. ?1. C. ?1/2. D. ?4.
If the Fed lowers the reserve requirements for banks, this would
A. cause a decrease in the money supply. B. cause an increase in the money supply. C. raise the size of the deposit expansion multiplier. D. improve the safety of banks but have no effect on the deposit expansion multiplier or the money supply.
The benefits of economic growth are ________, while the costs of economic growth are ________.
A. increased output per person; too small for concern B. more current consumption; less future consumption C. increased output per person; less future consumption D. increased output per person; the consumption sacrificed in exchange for capital formation