If an economy maintains a small rate of growth for a long period of time, then the size of the economy
A. will stay nearly constant.
B. can increase by a large amount.
C. can never double.
D. can only increase by a small amount.
Answer: B
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Commitments to make or receive payments in the future are made easier by money's function as a _____
a. unit of account b. store of value c. medium of exchange d. form of barter e. commodity
The time it takes for a particular monetary policy to change income is called the _____
a. recognition lag b. data lag c. reaction lag d. effect lag e. action lag
Imagine that Wingate National is a new bank, and that the legal reserve requirement is 10 percent. If it accepts a $1,000 cash deposit and immediately makes a $100 loan, its demand deposits, before any checks on its accounts are actually written, are
a. $1,000 b. $1,100 c. $900 d. $990 e. $110
Which of the following is not an explanation of why the Gramm-Rudman-Hollings Act proved inadequate in reducing the deficit?
A. The Supreme Court declared the automatic mechanism for budget cuts unconstitutional. B. Congress controls only the cyclical portion of government spending. C. Congress wasn't willing to cut spending enough. D. Congress wasn't willing to increase taxes enough.