The crowding-out effect of expansionary fiscal policy suggests that:
A. consumer and investment spending always vary inversely.
B. it is very difficult to have excessive aggregate spending in the U.S. economy.
C. increases in government spending financed through borrowing will increase the interest rate and thereby reduce investment.
D. tax increases are paid primarily out of saving and therefore are not an effective fiscal device.
Answer: C
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Which of the following did not contribute to the U.S. banking collapse of 1929-1933?
a. The Federal Reserve System and other government agencies did not act quickly or decisively enough b. Deposit insurance did not exist at that time. c. The banking industry consisted of only a few very large banks. d. The fact that the economy was in a continuous downward spiral during this period undermined depositors' confidence in the solvency of the banks.
A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2016 found a job paying $35,000. The CPI was 2.40 in 2016. The 1972 graduate's job paid ________ in nominal terms and ________ in real terms than the 2016 graduate's job.
A. more; more B. less; more C. less; less D. more; less
What are the largest asset and the largest liability of a typical bank?
A. Loans of the largest assets and deposits are the largest liability of a typical bank B. Reserves are the largest asset and deposits are the largest liability of a typical bank C. Loans of the largest liability and deposits are the largest asset of a typical bank
There are many different models of oligopoly because:
A. firms do not maximize profits in oligopolistic competition. B. beliefs play an important role in oligopolistic competition. C. oligopoly is the most complicated type of market structure. D. beliefs play an important role in oligopolistic competition and oligopoly is the most complicated type of market structure.