If no foreign residents owned any of the U.S. public debt, then it would be true that A) U.S. residents would essentially owe the public debt to themselves. B) there would be no distributional consequences associates with he public debt. C) there would be no interest payments on the public debt. D) the public debt […]
Date: September 2nd, 2020
Which of the following statements is true of inequality in the U.S. economy? A) Inequality in the U.S. economy is now less than what it was in the year 1950. B) Inequality in the U.S. economy is now higher than what it was in the year 1950. C) Inequality in the U.S. economy had increased […]
Date: September 2nd, 2020
As real Gross Domestic Product (GDP) decreases, people hold A) about the same amount of money since that has been enough in the past. B) less money because they will want to collect interest. C) more money because they will want to increase the amount of savings. D) less money since they will make fewer […]
Date: September 2nd, 2020
The intersection of aggregate demand and long-run aggregate supply identify the price level at which total planned A) government spending equals total planned tax revenues. B) real expenditures equal actual nominal GDP. C) real expenditures equal total planned production. D) export spending equals total planned import spending. ANSWER C
Date: September 2nd, 2020
Gross public debt minus all government interagency borrowing is A) government budget deficit. B) an entitlement. C) U.S. Treasury bonds. D) net public debt. ANSWER D
Date: September 2nd, 2020
Which of the following best explains why the federal tax rebates in 2008 and 2009 had almost no effects on aggregate demand? A) According to Ricardian equivalence theorem, those tax rebates did not affect aggregate demand because they were accompanied by more government spending. B) According to the permanent income hypothesis, those one-time tax rebates […]
Date: September 2nd, 2020
John makes it a point to save a portion of his salary every month. Assuming all else equal, if the real interest rate increases, it is likely to cause: A) a downward movement along John’s credit supply curve. B) John’s credit supply curve to shift to the left. C) John’s credit supply curve to shift […]
Date: September 2nd, 2020
Open market operations refer to the Fed’s transactions with ________. A) households B) private banks C) state governments D) firms ANSWER B
Date: September 2nd, 2020
Zero correlation between two variables implies that: A) change in one variable causes the other to change. B) both variables move in the same direction. C) the variables are not related to each other. D) both variables move in the opposite direction. ANSWER C
Date: September 2nd, 2020
________ is the market value of the final goods and services produced within the borders of a country during a particular period of time. A) Net Product Value B) Gross National Product C) Total Product D) Gross Domestic Product ANSWER D
Date: September 2nd, 2020
