When the central bank of a country sells government bonds, _____
a. money flows from individual banks to the central bank, thus increasing the money supply in the economy
b. money flows from the central bank to individual banks, thus reducing the money supply in the economy
c. money flows from individual banks to the central bank, thus reducing the money supply in the economy
d. money flows from the central bank to individual banks, thus increasing the money supply in the economy
c
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When economists use market values to aggregate output, they sum the:
A. number of items produced. B. quantity of items produced. C. inputs of each item produced. D. price times the quantity of each item produced.
Which statement is true?
A. We have had at least one recession in the 1940s, 1950s, 1960s, 1970s, 1980s, and 1990s. B. We have had at least two recessions in any one decade since World War II. C. We have had at least three recessions in all of the decades since World War II. D. None of the choices are true.
A technological change that raises the value of marginal product of capital ________ the rental rate of capital because the ________
A) raises; supply curve of capital shifts leftward B) lowers; supply curve of capital shifts rightward C) raises; demand curve for capital shifts rightward D) lowers; demand curve for capital shifts leftward
If the fiscal policy makers aim to increase aggregate demand, they will likely enact:
A. expansionary fiscal policy. B. contractionary fiscal policy. C. expansionary monetary policy. D. contractionary monetary policy.