The rule of 70 applies to a growing savings account but not to a growing economy
a. True
b. False
Indicate whether the statement is true or false
False
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If there is currently a recessionary gap in the economy the Fed could work toward recovery by increasing the money supply and decreasing the interest rate
a. True b. False Indicate whether the statement is true or false
Refer to the graph below. Which of the following statements about combination G is true?
A. The nation cannot produce combination G even if the nation gets additional resources
B. The nation can currently produce combination G if the nation specializes and trades with another nation
C. The nation may not be able to produce combination G, but it can consume that combination if it specializes and trades
D. The nation would much prefer to be at combination F than at combination G
If a policymaker wants to stimulate the economy, a ________ would be preferable to a ________
A) lower-valued multiplier; higher valued multiplier B) high MPS; low MPS C) low MPC; high MPC D) high MPC; low MPC
A surplus of cardboard boxes means that
A) at the current price of a cardboard box, the quantity demanded exceeds the quantity supplied. B) at the current price of a cardboard box, the quantity demanded is less than the quantity supplied. C) the current price of a cardboard box is less than the equilibrium price. D) at the current price of a cardboard box, the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium. E) More information is needed to determine if the price of cardboard boxes is higher than, lower than, or equal to the equilibrium price.