Suppose the economy is on the classical range of the aggregate supply curve and has a problem with inflation. According to Keynesian theory, which of the following is an appropriate discretionary fiscal policy to use in this situation?
A. a reduction in the money supply
B. less government regulation
C. increase federal spending
D. higher taxes
Answer: D
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In the article on China holding $4 trillion in dollars, for every dollar it holds in reserves, it prints
A. 6.5 fewer yuan for the domestic money supply. B. 10 fewer yuan for the domestic money supply. C. 6.5 additional yuan for the domestic money supply. D. 10 additional yuan for the domestic money supply.
What are the three books to which the FOMC has access and what information is included in each?
What will be an ideal response?
From 1992, America's trade performance was marked by a(n)
a. reduced current account deficit. b. increased current account deficit. c. reduced capital account surplus. d. increase in the growth of exports.
Demand deposits are: a. accounts in which one cannot write a check directly but from which the individual can easily withdraw money. b. the coins and bills that circulate in an economy
c. purchased from a bank or financial company, signed, and then redeemed with an additional signature when one wants to spend them. d. deposits in banks that are available upon making a cash withdrawal or writing a check.