The branch of economics that deals with the analysis of the whole economy is called

A) macroeconomics.
B) marginal analysis.
C) microeconomics.
D) metroanalysis.


A

Economics

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The trade-to-GDP ratio for the United States reached its lowest point of the last 100 years

A) around 1900. B) around 1970. C) around World War II. D) around World War I. E) around 2008.

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Suppose the price of wine in Berylia is higher than the world price of wine. If the market for wine is opened to international trade, how will the total surplus in the market get affected?

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If the Fed fears an economic downturn, it would be most likely to

a. buy additional bonds in order to reduce the federal funds rate. b. buy additional bonds in order to increase the federal funds rate. c. sell additional bonds in order to increase the federal funds rate. d. sell additional bonds in order to reduce the federal funds rate.

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If you deposit $500 into a savings deposit, the immediate effect (do not consider the money multiplier which we will study in the next chapter) is:

a. M1 rises, M2 rises, and the monetary base remains the same. b. M1, M2, and the monetary base rise. c. M1, M2, and the monetary base fall. d. M1, M2, and the monetary base remain the same. e. M1 falls, M2 remains the same, and the monetary base remains the same.

Economics