According to Gordon, the three main ingredients in the recent U.S. housing bubble are
A) low interest rates, saving glut, and financial innovation.
B) high interest rates, lack of savings, and financial innovation.
C) financial innovation, expansionary fiscal policy, and capital outflow.
D) capital outflow, budget deficit, and trade deficit.
A
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If the Federal Reserve conducts an open market purchase, the
A) interest rate will not change. B) interest rate will increase. C) money supply is decreased. D) interest rate will decrease.
A decrease in gross domestic product (GDP) necessarily means that consumer welfare has decreased
a. True b. False Indicate whether the statement is true or false
GATT is the acronym (or abbreviation) for:
a. the General Agreement on Taxes and Tariffs. b. the General Agreement on Tariffs and Trade. c. the General Agreement on Trade and Taxes. d. the General Agreement on Trade.
Velocity is not a constant, and it normally increases when interest rates rise.
Answer the following statement true (T) or false (F)