A movement along the consumption function is the result of a change in
A) consumer wealth. B) income.
C) autonomous consumption. D) expected wealth.
B
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Throughout history many governments have financed government operations with the printing press, and paying government bills by increasing the money supply. The United States followed this path during the Civil War, approximately doubling the U.S. money
supply between 1860 and 1865 using paper fiat money called Greenbacks. What do you think this rapid increase in the money supply did to inflation and inflationary expectations? Suppose the economy was in long-run equilibrium by the end of the war and the government began to remove Greenbacks and reduce the money supply. Use your understanding of the Phillips curve relationship to explain the effect on the economy.
The Board of Governors of the Federal Reserve consists of ____________ members appointed by the President of the United States and confirmed by the Senate for 14-year terms.
a. nine b. four c. seven d. five
Unions have had an impact on U.S. firms by supporting all of the following types of legislation except
A. Health and education programs. B. Civil rights legislation. C. National security laws. D. Minimum wage laws.
A labor contract provides for a first-year wage of $15 per hour, and specifies that the real wage will rise by 2 percent in the second year of the contract. The CPI is 1.00 in the first year and 1.09 in the second year. What dollar wage must be paid in the second year?
A. $16.09 B. $15.30 C. $16.45 D. $16.68