Giving up consumption today for consumption tomorrow accelerates economic growth by
A. rapid expansion of the money supply.
B. increasing the expected rate of inflation.
C. having the economy produce no consumer goods.
D. increasing saving out of disposable income.
Answer: D
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A government-imposed price floor above the market price of milk would increase consumers' expenditures on milk only if
a. demand is elastic b. supply is inelastic c. demand falls d. demand is inelastic e. supply is unit elastic
Which of the following bank assets declined in value in the mid-2000s?
A) subprime loans B) mortgage-backed securities C) collateralized debt obligations D) nontraditional loans E) all of the above
The Federal Reserve System:
A. has the same status as the Supreme Court. B. is basically an independent agency. C. has the status of a congressional committee. D. is an agency of the executive branch of the federal government.
According to new growth theory, as technology becomes more important to growth, so does
A) increasing taxes. B) human capital. C) military spending. D) increasing trade barriers.