A decrease in the money supply aimed at decreasing aggregate output is referred to as
A) contractionary fiscal policy.
B) expansionary fiscal policy.
C) expansionary monetary policy.
D) contractionary monetary policy.
Answer: D) contractionary monetary policy.
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How can an increase in human capital lead to an increase in GDP? Why might it not lead to an increase in GDP?
What will be an ideal response?
Which of the following fiscal policy actions would definitely cause a reduction in the size of an inflationary gap?
A) cuts in taxes and increases in government spending B) increases in government spending C) increases in taxes D) cuts in taxes
During fiscal year 2012, the most recent mentioned in the text, the federal government spent approximately
a. $1.7 billion b. $1.9 trillion c. $3.7 trillion d. $14.0 trillion
Which statement is false?
A. Time deposits are subject to higher reserve requirements than checking deposits. B. Treasury bills and notes are generally considered part of a bank's secondary reserves. C. Large banks are subject to a 10 percent reserve requirement on nearly all of their checking deposits. D. None of the statements are false.