Refer to Table 9-2. In Year 1, if savings deposits had been $200 billion instead of $150 billion, M1 would have been
A) unaffected.
B) larger by $50 billion.
C) smaller by $50 billion.
D) $100 billion.
Ans: A) unaffected.
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The key determinant of whether Social Security will be a good investment is _____
a. the number of hours worked by future employees b. internal migration c. real income growth in the United States d. the solvency of the system today
Which of the following is not a form of crowding out?
a. Lower household spending due to higher interest rates b. Lower business spending due to higher interest rates c. Lower net exports due to higher interest rates d. Lower private spending due to higher taxes e. Greater output and employment in the short run
An decrease in taxes combined with a decrease in government purchases would: a. increase AD
b. decrease AD. c. leave AD unchanged. d. have an indeterminate effect on AD.
In Econland total output is $6 billion, population equals 250,000 people, and, of these, 200,000 are employed workers. Output per person in Econland equals ________ and average labor productivity equals ________.
A. $24,000; $24,000 B. $30,000; $30,000 C. $30,000; $24,000 D. $24,000; $30,000