The basic idea behind the multiplier is that an increase in
A. GDP brings about an additional, larger increase in GDP.
B. consumer spending causes a larger increase in investment spending.
C. government spending causes a larger increase in tax revenues.
D. spending will cause an even larger increase in equilibrium GDP.
Answer: D
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Ancillary tools available to the Fed besides the big three policy options include
a. the discount rate and moral suasion b. margin requirements and moral suasion c. margin requirements and reserve requirements d. the federal funds rate and the discount rate e. open market operations and bracket creep
Which of the following is correct?
a. There is consensus among economists that unions are good for the economy. b. There is consensus among economists that unions are bad for the economy. c. There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. d. There is no consensus among economists about whether unions are good or bad for the economy.