Suppose the United States unexpectedly decided to pay off its debt by printing new money. Which of the following would happen?
a. People who held money would feel poorer.
b. Prices would rise.
c. People who had lent money at a fixed interest rate would feel poorer.
d. All of the above are correct.
d
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If the output level is such that the aggregate expenditure line lies below the 45-degree line, which of the following is true?
a. Aggregate expenditure is greater than output, so inventories will increase and output will be raised. b. Aggregate expenditure is greater than output, so inventories will decrease and output will be increased. c. Aggregate expenditure is less than output, so inventories will decrease and output will be raised. d. Aggregate expenditure is less than output, so inventories will increase and output will be lowered. e. Aggregate expenditure is greater than output, so inventories will increase and output will be lowered.
Which of the following statements is correct?I.The Fed can periodically and without warning examine member commercial banks to ensure that they are conforming to current banking standards.II.The Fed helps the government collect certain tax revenues and aids in the purchase and sale of government securities.
A. I only B. II only C. Both I and II D. Neither I nor II
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Cost curves shift if i. technology changes. ii. the prices of factors of production change. iii. productivity changes
A) only i B) i and iii C) only ii D) i and ii E) i, ii, and iii