Evidence shows the United States can continue its expansionary fiscal policies without causing a new financial crisis.
Answer the following statement true (T) or false (F)
False
As the United States pays higher interest rates on bonds, it may have to rely more on long-term bonds which could push up long term interest rates and have a negative effect on the economy.
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Which of the following is likely to cause market failure and be undersupplied?
A. River water B. Research C. Orange juice D. Grazing pasture
Which item is included in M1?
A. Large-denomination certificates of deposit B. Money market deposit accounts C. Passbook savings account balances D. Travelers checks
If the exchange rate rises as shown by the arrow, the price of American exports to foreigners will be ________, and foreign nations will demand ________ dollars in order to buy ________ American exports
A) higher; fewer; fewer B) cheaper; fewer; more C) cheaper; more; more D) cheaper; fewer; fewer E) higher; more; more
In the IS-MP model, when the Fed increases the real interest rate
A) the MP curve shifts up resulting in a decline in the output gap. B) the MP curve shifts up resulting in an increase in the output gap. C) the MP curve shifts down resulting in a decline in the output gap. D) the MP curve shifts down resulting in an increase in the output gap.