If the MPC is 0.5, and the government cuts spending by $400b, the overall effect on GDP will be:
A. a decrease of $400b.
B. an increase of $400b.
C. a decrease of $800b.
D. an increase of $800b.
C. a decrease of $800b.
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The most important thing about higher labor productivity is that it means
A) we can compete well with other nations. B) we are doing better than anyone else is. C) we can achieve a happier population. D) we can have a higher standard of living.
Which activity of the Fed would tend to increase the nation's money supply?
A) Sales of government bonds B) Lowering the discount rate C) Raising the required reserve ratio D) None of the above.
Attempts to shield the poor from the worst results of adjustment programs involve
a. expenditure-switching policy b. absorption c. a social safety net d. conditionality e. all of the above
Government bond:
What will be an ideal response?