The relationship between aggregate expenditures and disposable income is shown by the:
A. ? aggregate expenditures curve.
B. ?consumption function.
C. ?investment curve.
D. ?saving-disposable personal income curve.
Answer: A
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In response to an unanticipated tightening of monetary policy, the price level ________ at first, then ________ after a year
A) rises; returns most of the way to its original value B) falls; returns most of the way to its original value C) remains roughly unchanged; begins to rise D) remains roughly unchanged; begins to fall
Which of the following portions of the national debt impose a net interest burden on the federal government?
a. treasury bonds held by government agencies b. treasury bonds held by private investors c. treasury bonds held by the Federal Reserve system d. treasury bonds held in the Social Security Trust Fund
How would a country offset the effects of reduced government spending (assume fixed exchange rates and low international capital mobility)?
a. The central bank would sell securities in the open market. b. The central bank would buy securities in the open market. c. The central bank would buy domestic currency in the foreign exchange market. d. The central bank would raise the discount rate.
One reason regulators push for higher prices in an industry is to
A. prevent excess profits in the industry. B. protect the public from excessively low prices. C. encourage usage of the good or service. D. protect against the demise of existing firms.