Recall from the text that the first good subjected to rationing during World War II was
a. gasoline
b. tires
c. copper
d. food
e. sugar
B
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Exhibit 30-5
?
A. P4 - P2. B. P3 - P1. C. P2 - P1. D. P3 - P2. E. a and b
An increase in inflation leads to higher ________
A) output B) spending C) real interest rate D) all of the above E) none of the above
If we included intermediate goods in the calculation of GDP,
a. we would be underestimating GDP b. we would be accurately measuring GDP c. we would be overestimating GDP d. any measurement problems would be offset by including the sale of new goods e. any measurement problems would be offset by including the final goods as well
The Federal Open Market Committee (FOMC) enters the market to purchase $10 million in securities. Suppose the Paris First National Bank decides to sell $10 million of the securities it owns to the FOMC; then
a. the Paris First National Bank now has $10 million more in excess reserves at the Fed b. the Paris First National Bank still has the $10 million government securities but they are held at the Fed c. this purchase and sale appears as a $20 million increase in the Fed's liabilities to Paris First National Bank d. the Fed has increased its asset position by $20 million, the bank's liabilities fall by $20 million e. there is no change to either the Fed or Paris First National Bank's balance sheet, there's just a trade-off of equal value