If the Treasury finances an expenditure by borrowing from banks with excess reserves, the money supply will
A) remain unchanged.
B) rise by an amount equal to the expenditure.
C) rise by a multiple of the expenditure.
D) fall by a multiple of the expenditure.
B
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A decision by Congress to reduce spending in order to balance the government's budget is an example of ________ policy.
A. monetary B. fiscal C. structural D. aggregation
A $1,000 price tag on a Coach handbag in a department store is an example of money serving as a
A. medium of exchange. B. unit of accounting. C. store of value. D. an investment tool.
If a firm fails to provide investors with at least a normal rate of return
A) it will not be able to remain in business in the long run. B) it will not be able to remain in business in the short run. C) it will shut down in the short run but will be able to remain in business in the long run. D) it will have a positive economic profit but a negative accounting profit.
The following table provides data for an economy in a certain year. Consumption expenditures1,000Imports600Government purchases of goods and services700Construction of new homes and apartments500Sales of existing homes and apartments600Exports500Government payments to retirees200Household purchases of durable goods300Begining-of-year inventory500End-of-year inventory600Business fixed investment300Given the data in the table, how much did households spend on nondurables and services?
A. 300 B. 700 C. 1,300 D. 1,000