Expansionary monetary policy, by increasing the money supply, also increases interest rates and recessionary gaps.
a. true
b. false
Ans: b. false
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If you are buying a bond that is newly issued by the corporation, you are buying it in the primary market
Indicate whether the statement is true or false
Which of the following firms is most likely to shut down?
a. TicToc, Inc. has a total revenue of $500,000 and variable costs of $450,000 b. LWT, Inc. has a total revenue of $3 million and variable costs of $3.2 million. c. Sparkle, Inc. has a total revenue of $4 million and variable costs of $3.7 million. d. Motif, Inc has a total revenue of $6 million and variable costs of $6 million.
Which of the following would NOT be included in the expenditure approach to calculating GDP?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. The "stimulus package" that the government implemented in response to the Great Recession of 2007-09 made the cyclically-adjusted budget of the U.S. have a very large positive balance in that time period. 2. The so-called "recognition lag" associated with fiscal policy is a result of how slowly the U.S. Congress moves. 3. The concept of a "political business cycle" implies a misuse of fiscal policy making it a source of economic instability. 4. The impact of an expansionary fiscal policy may be strengthened if it crowds out some private investment spending.