The immediate primary cause of the swing from federal budget surpluses in 2000 and 2001 to a budget deficit in 2002 was:
A. the tax cuts of 2001.
B. spending increases relating to the wars in Afghanistan and Iraq.
C. the recession of 2001.
D. the acceleration of inflation in 2001 and 2002.
C. the recession of 2001.
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What can explain the fact that DVD players decreased in price during the 1990s even as more DVD players were being sold?
A) The demand for DVDs was declining. B) The supply of DVD players was decreasing. C) The supply of DVD players was increasing more than the demand for DVD players. D) The demand for DVD players was increasing more than the supply of DVD players.
In which of the following ways can a corporation raise new funds for investment? I. Issuing new shares of stock II. Having existing stock resold between two owners
A) I only B) II only C) Both I and II D) Neither I nor II
The most commonly used tool in monetary policy is:
A. changes in required reserve ratios. B. changes in the discount rate. C. open market operations. D. express lending transactions.
As monetarists view the equation of exchange:
A. V changes erratically and unpredictably. B. V is quite stable. C. V usually changes in the same direction of any given change in M. D. V usually changes in the opposite direction of any given change in M.