The Federal Reserve can increase aggregate demand by:
a. Increasing taxes
b. Buying government securities in the open market
c. Raising the reserve requirement
d. Raising the discount rate
b. Buying government securities in the open market
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The price of pineapples has risen dramatically. Which of the following is likely to happen?
A) The quantity of pineapples supplied will decrease. B) The supply of pineapples will increase. C) The supply of pineapples will decrease. D) The quantity of pineapples supplied will increase.
The Congressional Budget Office reported that federal budget deficits in the United States were likely to increase in future years, and these higher deficits might "pose a threat to the economy by crowding out business investment and threatening a
spike in interest rates." This higher budget deficit would be represented graphically by A) a shift in the supply curve for loanable funds to the right. B) a movement to the right along the supply curve for loanable funds. C) a shift in the supply curve for loanable funds to the left. D) a movement to the left along the supply curve for loanable funds.
The actual rate of inflation is equal to the expected rate of inflation along the:
a. downward-sloping Phillips curve. b. upward-sloping aggregate supply curve. c. horizontal aggregate supply curve. d. downward-sloping aggregate demand curve. e. vertical Phillips curve.
When looking at the impact of a change in trade policy economists use consumer and producer surplus to look at the winners and losers. Free trade economists insist that
A. there are winners and losers, but that the loss to the losers is greater than the gain to the winners. B. there are winners and losers, but that the gain to the winners is greater than the loss to the losers. C. everyone loses. D. no one loses.