Decreased investment spending in the economy would be a possible result of:
A. a decrease in interest rates.
B. an open market purchase of bonds by the Fed.
C. an open market sale of bonds by the Fed.
D. an increase in the money supply.
Answer: C
You might also like to view...
In the foreign exchange market, the exchange rate is volatile because the
A) factors that influence the supply of dollars also influence the demand for dollars. B) demand for dollars changes more frequently than the supply of dollars. C) both the demand curve for dollars and the supply curve of dollars are very flat. D) supply of dollars changes more frequently than the demand for dollars. E) None of the above is related to the volatility of the exchange rate.
The practice of imposing import restrictions to protect a newly developing domestic economy typically results in:
a. a rapid improvement in the standard of living. b. expanded trade relations with other nations. c. lower prices of domestic products. d. allocation of resources away from the primary products. e. greater cost efficiency in domestic production.
Which of the following is a reason why government debt is different from individual debt?
A. Government debt can be owed to foreigners, unlike the debt of individuals. B. Government cannot create money to finance its debt. C. Government has fewer sources of income to finance its debt than individuals. D. Government is ongoing, individuals are not.
The above table shows the demand schedule and supply schedule for chocolate chip cookies. If the price is $4.00 per pound, there is a
A) shortage of 2 pounds of chocolate chip cookies. B) shortage of 3 pounds of chocolate chip cookies. C) shortage of 5 pounds of chocolate chip cookies. D) surplus of 3 pounds of chocolate chip cookies.