Which of the following coordinates and plans foreign aid programs and expenditures in the United Sates?
a. The Federal Reserve Board
b. The Federal Open Market Committee
c. The Agency for International Development
d. The Bureau of Economic Analysis
e. The U.S.Department of the Treasury
c
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The present value of a future sum of money is the amount that, if invested today, will grow
A) as large as that future sum, given the interest rate. B) at a constant rate forever. C) as large as that future sum, less taxes payable. D) as large as that future sum, if the interest rate is zero.
Assume that all taxes are lump-sum, net exports = 0, and the marginal propensity to consume is 0.8. Then, if investment and taxes were each to fall by $100 million, the equilibrium level of income would
A) rise by $100 million. B) fall by $100 million. C) rise by $500 million. D) fall by $500 million.
To achieve a $500 billion decrease in AD, if the MPC is 0.8, what decrease in government purchases would be called for?
a. $100 billion b. $400 billion c. $500 billion d. $625 billion
If the dollar price of foreign currencies falls (that is, the dollar appreciates), we would expect:
A. aggregate demand to decrease and aggregate supply to increase. B. both aggregate demand and aggregate supply to decrease. C. both aggregate demand and aggregate supply to increase. D. aggregate demand to increase and aggregate supply to decrease.