Assume that taxes are constant. If the government borrows $17 billion in new funds and has a budget deficit of $35 billion, then the central bank has to:
a. reduce the money supply by $52 billion.
b. reduce the money supply by $35 billion.
c. increase the money supply by $17 billion.
d. increase the money supply by $35 billion.
e. increase the money supply by $18 billion.
e
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The above table shows the distribution of wealth and income in Miseria. Ninety-five percent of the wealth is owned by what percent of the population?
A) 20 percent B) 40 percent C) 60 percent D) 95 percent
Which of the following is the most efficient means of trade?
A) barter B) money C) government rationing D) the combination of barter with some government rationing
If the Fed sells government bonds, bank reserves will
A) decrease leading to a decrease in the money supply. B) increase leading to a decrease in the money supply. C) increase leading to an increase in the money supply. D) decrease leading to an increase in the money supply.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.