Suppose the economy is at full employment with a high inflation rate. Which combination of government policies is most likely to reduce the inflation rate?
A. Buy government securities in the open market and increase taxes
B. Buy government securities in the open market and decrease taxes
C. Sell government securities in the open market and increase government spending
D. Sell government securities in the open market and decrease government spending
D. Sell government securities in the open market and decrease government spending
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If Country A's real GDP is growing at 6 percent per year and Country B's real GDP is growing at 6 percent per year, then the standard of living is
A) growing more rapidly in Country A. B) higher in Country B. C) changing at the same rate in Country A and Country B. D) growing more slowly in Country A. E) changing at the same rate in Country A and Country B only if the rate of population growth is the same in both countries.
Suppose there are six bait and tackle shops that sell worms in a lakeside resort town in Minnesota. If we add the respective quantities that each shop would produce and sell at each of the six bait and tackle shops when the price of worms is $2 per bucket, $2.50 per bucket, and $3 per bucket, and so forth, we have found the
a. market demand curve. b. market supply curve. c. equilibrium curve. d. surplus or shortage depending on market conditions.
Prices in both the U.S. and India rise, but prices in India increase by a smaller percentage. According to purchasing-power parity the U.S. dollar
a. gains value both in terms of the domestic goods and services it can buy and in terms of the Indian currency it can buy. b. gains value in terms of the domestic goods and services it can buy, but loses value in terms of the Indian currency it can buy. c. loses value in terms of the domestic goods and services it can buy, but gains value in terms of the Indian currency it can buy. d. loses value both in terms of the domestic goods and services it can buy and in terms of the Indian currency it can buy.
How much money can a bank loan if it receives an initial deposit of $4,000 and the required reserve ratio is 20%?
a) $800 b) $3,200 c) $4,000 d) $20,000