Author Question: Refer to Table 26-2. Consider the hypothetical information in the table above for potential real ... (Read 53 times)

kwoodring

  • Hero Member
  • *****
  • Posts: 560
Refer to Table 26-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy.
 
  If the Fed wants to keep real GDP at its potential level in 2017, it should
  A) increase income taxes. B) buy Treasury securities.
  C) increase the required reserve ratio. D) sell Treasury securities.

Question 2

If foreign holdings of U.S. dollars decrease, holding all else constant,
 
  A) the balance on the U.S. current account will decrease.
  B) the U.S. balance of trade will decrease.
  C) the balance on the U.S. financial account will decrease.
  D) the balance on the U.S. capital account will decrease.



brbarasa

  • Sr. Member
  • ****
  • Posts: 308
Answer to Question 1

B

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

For a complete list of videos, visit our video library