Goodyear benefitted when the Federal Reserve ________ in 2008. This Fed action would help increase demand for its tires, which allowed Goodyear to increase employment and increase prices
A) implemented a series of open market sales of Treasury bonds
B) drove down interest rates
C) increased the discount rate
D) lowered the required reserve rate
B
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In order to compare benefits today with future costs, we need to know:
A. the rate of inflation. B. the uncertainty associated with future benefits and costs. C. the interest rate. D. All of these statements are true.
Which of the following are possible consequences when the government reduces government purchases to address an inflationary gap?
I. increase in the price of bonds II. increase in net exports III. decrease in the federal budget deficit (or increase the surplus) IV. decrease in the exchange rate A) I, II, III, and IV B) I and III only C) I, III, and IV only D) II, III, and IV only
Which one of the following factors will most likely cause an increase in aggregate demand?
A. An increase in net exports. B. An increase in the real interest rate. C. A decrease in net exports due to falling incomes abroad. D. A technological development that decreases the cost of producing computer chips.
In the United States, exports of goods and services accounted for about what percentage of GDP (total output) in 2011?
A. 6 percent B. 14 percent C. 24 percent D. 42 percent