Consumer spending represents about what fraction of total spending in the economy?
a. one-fifth
b. two-thirds
c. one-third
d. two-fifths
e. three-fourths
b
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Which of the following decreases the natural unemployment rate?
A) higher oil prices B) a recession C) a decrease in aggregate demand so that fewer workers are needed D) many young people entering the labor force E) rapid technological change that increases the demand for labor
Which of the following statements is true?
A) If the domestic price of a good in a country is higher than the world price, the country will become an exporter of the good. B) Whether a country becomes an importer or an exporter of a good depends only on the domestic price of the good and is independent of the world price of the good. C) If the domestic price of a good in a country is higher than the world price, the country will become an importer of the good. D) Whether a country becomes an importer or an exporter of a good depends only on the world price of the good and is independent of the domestic price of the good.
Members of Congress are able to influence monetary policy, albeit indirectly, through their ability to
A) withhold appropriations from the Board of Governors. B) withhold appropriations from the Federal Open Market Committee. C) propose legislation that would force the Fed to submit budget requests to Congress, as must other government agencies. D) instruct the General Accounting Office to audit the foreign exchange market functions of the Federal Reserve.
If there is a small surplus in the combined current account plus capital and financial account for a certain year, then to make the two accounts balance there will be:
A. An increase in the exchange rate B. A decrease in the exchange rate C. An increase in official reserve holdings D. A decrease in official reserve holdings