Assume the government decides to decrease taxes and to finance the expected budget deficit with borrowing in the real credit market. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the left.
b. Start the analysis in the real goods market with aggregate demand shifting to the right.
c. Start the analysis in the real goods market with aggregate supply shifting to the left.
d. Start the analysis in the real goods market with aggregate supply shifting to the right.
e. Start the analysis in the real credit market with demand for real credit shifting to the right.
Question 2
If you put 500 into a checking account, the immediate effect (do not consider the money multiplier which we will study in the next chapter) is:
a. M1 rises, M2 rises, and the monetary base remains the same.
b. M1, M2, and the monetary base rise.
c. M1, M2, and the monetary base fall.
d. M1, M2, and the monetary base remain the same.
e. M1 rises, M2 falls, and the monetary base remains the same.
The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
Many thought ideological politics was over in the United States, but 2012 showed strong ideological
Phrases that Decrease Customer Service Level
American Government: Roots and Reform, AP* Edition, 12th Edition
US federal budget deficit/surplus and debt