On a diagram of the planned expenditure function Ep and the 45-degree line, we find autonomous planned spending
A) where the 45-degree line hits the vertical axis.
B) at each level of output by the vertical distance between the Ep and 45-degree lines.
C) where Ep intersects the vertical axis.
D) at each level of income by the vertical distance from the horizontal axis up to Ep.
C
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Firms are much more likely to provide non-excludable public goods than excludable public goods. ?
Answer the following statement true (T) or false (F)
Explain and demonstrate graphically how targeting the federal funds rate can result in fluctuations in nonborrowed reserves
What will be an ideal response?
Policy is conducted via discretion if policymakers
a. announce and achieve a constant money supply. b. announce and achieve a constant interest rate. c. are free to respond to changes in economic conditions on a case-by-case basis. d. announce in advance how they will respond to changes in economic conditions.
A potential drawback to the big-push strategy in LDCs is that
a. supply bottlenecks may occur that would undermine the all-at-once development process b. there is a problem in choosing which sectors to develop first c. private firms will avoid making the planned investment d. it calls for vast movements of resources, including labor, which may not be possible because people are disinclined to move e. it depends primarily on foreign aid which has proved to be an unreliable source of investment funding