A federal system consists of one level of government to provide public goods and services.
A. True
B. False
C. Uncertain
B. False
You might also like to view...
From the economist's point of view
A) wants and needs are exactly the same. B) a want is a lifesaving necessity. C) needs are objectively undefinable. D) we all have wants but only very poor people have needs.
According to the Taylor rule, if inflation has risen by 6 percentage points above its target of 2 percent, the Fed should:
A. grow the money supply at a rate of 6 percent per year. B. raise the real federal funds rate by 6 percentage points. C. raise the real federal funds rate by 3 percentage points. D. raise the real federal funds rate by 12 percentage points.
Assume the legal reserve ratio is 25 percent and the Fourth National Bank borrows $10,000 from the Federal Reserve Bank in its district. As a result:
A. commercial bank reserves are increased by $10,000. B. the supply of money automatically declines by $7,500. C. commercial bank reserves are increased by $7,500. D. the supply of money is automatically increased by $10,000.
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher