When the government runs a budget deficit, we would expect to see that
A) private saving will fall.
B) investment will fall.
C) G + TR < T.
D) public saving is positive.
Answer: B
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Refer to Figure 13.3. If exchange rates are floating, fiscal policy designed to reduce the federal deficit and the typical Fed response to the change in inflation caused by the fiscal policy would best be represented by a movement from ________ in
panel (a) and a corresponding movement from ________ in panel (b). A) point A to point D; point X to point Y B) point C to point B; point X to point Y C) point D to point A; point Y to point X D) point B to point C; point Y to point X
Thomas Jefferson and James Madison
a. were instrumental in the creation of the First Bank of the United States b. originally came up with the idea for the Federal Reserve System c. changed the U.S. currency from the dollar to the British pound to avoid financial panic d. opposed the idea of a central bank because they believed it was unconstitutional e. served as governors on the first Board of Governors
Money is any item that
A) serves as a medium of exchange for goods and services. B) can be converted into silver with relatively little loss in value. C) can be converted into gold with relatively little loss in value. D) facilitates a connecting link between credit instruments and debt instruments.
What happens to the marginal cost curve when the marginal physical product of labor is rising?
A. It becomes vertical. B. It becomes downward sloping. C. It becomes horizontal. D. It becomes upward sloping.