Which of the following is a tool the Federal Reserve System can use to regulate the quantity of money?
i. changing the discount rate
ii. conducting open market operations
iii. changing the required reserve ratio
A) i only B) ii only C) i and ii D) ii and iii E) i, ii, and iii
E
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Which of the following is NOT a simplifying assumption in the simple Keynesian model?
A) There is no foreign trade. B) Net investment and gross investment are equal. C) All profits are distributed to the business owners. D) Real disposable income equals government purchases of goods and services.
An example of a good or service that would not count in the U.S. GDP would be:
A. a car made by Toyota in Tennessee. B. a car made by Ford in Michigan. C. sneakers made by Nike in Indonesia. D. sneakers made by New Balance in Ohio.
Suppose the European Union has a Nominal GDP of 20 trillion Euros, and their GDP deflator is 125. What is the European Union’s Real GDP?
A. 25 trillion Euros B. 16 trillion Euros C. 0.16 trillion Euros
As farm productivity increases faster than demand:
a. fewer farmers are required to meet demand b. the number of farmers decreases over time c. the decreasing number of farmers is good news for society because the basic economic problem is scarcity d. all of the above