If the desired fiscal restraint is $80 billion and the AD excess is $160 billion, we can conclude that
A. The MPC is 2.0.
B. The multiplier is 0.50.
C. The MPS is 0.50.
D. There is a recessionary gap.
Answer: C
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The table above shows the exchange rates between various currencies and the U.S. dollar. Between 2015 and 2016, the U.S. dollar ________ against the Euro and ________ against the Japanese yen
A) depreciated; depreciated B) appreciated; appreciated C) appreciated; depreciated D) depreciated; appreciated
Economic growth allows a society to consume
A. a higher quality of goods. B. a wider variety of goods. C. more goods per person. D. all of the above.
The two main responsibilities of the Federal Reserve System are to ________ and to ________.
A. insure bank deposits; print currency B. enable banks to make affordable mortgages; control the exchange rate of the U.S. dollar C. apprehend counterfeiters; regulate the stock market D. conduct monetary policy; oversee financial markets
Which of the following states the relationship between a bond's price and its yield?
a. As the price falls, the yield falls. b. Price and yield are usually independent of each other. c. As the price rises, the yield rises. d. As the price rises, the yield falls. e. As the yield rises, so does the price.