Which of the following does NOT increase the productivity of labor?
Suppose that The Bahamas has decided to peg its currency to…
Suppose that The Bahamas has decided to peg its currency to the US Dollar, and that the small island nation experiences an unexpected increase in the demand for its tourism services from abroad. This will lead the demand for Bahamian Dollars to ____, and the Bahamian Central Bank will have to respond by intervening in the foreign exchange market and _____ Bahamian Dollars
In the economy depicted above, the value of Autonomous Spend…
In the economy depicted above, the value of Autonomous Spending is ____, and the value of Equilibrium Real GDP is ____.
A Swedish charity sends natural disaster assistance to the U…
A Swedish charity sends natural disaster assistance to the United States. This transaction appears as a…
A Danish consumer purchases an American-made F150 at a Ford…
A Danish consumer purchases an American-made F150 at a Ford dealership in Coppenhagen. This transaction appears as a…
Suppose that the government spending multiplier is 2, and th…
Suppose that the government spending multiplier is 2, and that the tax multiplier is -2.5. A reduction in government spending and taxes of $100 million will ____ Real GDP by ____.
With the single exception of changes in the capital gains ta…
With the single exception of changes in the capital gains tax rate, expansionary fiscal policy typically leads the real interest rate to ____, because it leads an existing government budget deficit to ____.
Expansionary fiscal policy that is implemented to prevent re…
Expansionary fiscal policy that is implemented to prevent real GDP from falling below potential GDP will likely result in a ______ inflation rate and a _____ level of Real GDP.
Suppose that Jose withdraws $45 from his mom’s checking acco…
Suppose that Jose withdraws $45 from his mom’s checking account at the Bank of Tampa. He keeps $15 in cash and deposits the rest in his own savings account at Bank of America. Which of the following has occurred?
Suppose that the Federal Reserve decides to conduct “extraor…
Suppose that the Federal Reserve decides to conduct “extraordinary” open-market purchases. This leads the Federal Funds Rate to _____, and commercial banks should respond by ____ lending.