When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand
B. increase; raise; decline
C. decline; lower; decline
D. decline; raise; decline
Answer: B
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Other things the same, if U.S. net capital outflow rises, so does U.S. saving
a. True b. False Indicate whether the statement is true or false
In his article Straight Talk About Economic Literacy, economist _______________________ said, "Citizens can vote even if they have no idea what they are doing. If enough voters fit that description, democratic governments are bound to make foolish decisions."
A) Milton Friedman B) James Buchanan C) Bryan Caplan D) John Maynard Keynes
When demand increases, in the short run the purely competitive firm:
A. can alter available inputs and output as well as the size of the plant. B. will earn higher profits or experience smaller losses. C. will experience no change in costs as it steps up production. D. will spend more on advertising.
In 2015, the population of the world
A. was approximately 500 million people. B. fell below 2 billion people. C. was more than 7 billion people. D. was close to 1 trillion people.