The Fed can decrease the money supply by conducting open-market
a. sales or by raising the discount rate.
b. sales or by lowering the discount rate.
c. purchases or by raising the discount rate.
d. purchases or by lowering the discount rate.
a
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Pat gives up a $40,000 per year job to stay at home and take care of the house. By so doing, Pat saves $15,000 in child care and house cleaning services which he now performs himself. The direct effect on GDP from Pat's decision is a decrease of
A) $25,000. B) $15,000. C) $30,000. D) $40,000. E) $55,000.
_________ means the expression by cultural and ethnic groups of their heritage
a. Multiculturalism b. Socialization c. The 5 S Concept d. Apartheid
If the economy is already producing at its potential, _____
a. the spending multiplier equals 1/(1 - MPC) in the long run b. the spending multiplier is less than 1/(1 - MPC) in the long run c. the spending multiplier is more than 1/(1 - MPC) in the long run d. the spending multiplier equals zero in the long run e. the aggregate demand curve is horizontal
National defense is an example of a good that is:
A. only nonexcludable. B. largely nonrival and nonexcludable. C. neither nonrival nor nonexcludable. D. only nonrival