When the Fed buys securities from the public, banks' reserves ________ and the quantity of money ________
A) increase; increases
B) increase; decreases
C) decrease; increases
D) decrease; decreases
E) do not change; increases
A
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Alex works in his own home as a homemaker and full-time caretaker of his children. Officially, he is
A. not in the labor force. B. in the labor force. C. employed. D. unemployed.
The distribution of income is not a zero-sum game
Indicate whether the statement is true or false
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real GDP and net nonreserve international borrowing/lending balance in the context of the Three-Sector-Model? a. Real GDP falls
and net nonreserve international borrowing/lending balance becomes more negative (or less positive). b. Real GDP rises and net nonreserve international borrowing/lending balance becomes more negative (or less positive). c. Real GDP falls and net nonreserve international borrowing/lending balance becomes more positive (or less negative). d. Real GDP falls and net nonreserve international borrowing/lending balance falls. e. There is not enough information to determine what happens to these two macroeconomic variables.
The biggest flaw in the logic of the labor argument is the failure to consider
A) the needs of developing countries. B) the impact of tariffs on inflation. C) the differences in national productivity levels. D) the impact on employment levels.