The aggregate demand curve in the figure above shifts rightward if
A) potential GDP increases.
B) the money wage rate falls.
C) taxes are raised.
D) government expenditure increases.
E) the Federal Reserve raises the interest rate.
D
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Checks that people write are
A) the largest component of the money supply. B) not money. C) only part of M2 but not part of M1. D) part of M1 but not part of M2.
Which of the following is an intermediate target?
A) M2 B) reserves C) unemployment rate D) inflation rate
The crowding-out effect refers to:
a. higher interest rates and reduced private spending that results from financing federal budget deficits. b. higher future taxes accompanying budget deficits to reduce private consumption. c. the inflation rate to rise when the unemployment rate is low. d. increases in private savings to reduce interest rates and, thereby, crowd-out government
Markets for illegal goods
What will be an ideal response?