The interest rate paid on government securities that mature in less than a year is the

Refer to Figure 28-1. Suppose that the economy is currently at point A. If the Federal Reserve engaged in expansionary monetary policy, where would the economy end up in the short run?

A) It would remain at point A. B) point B C) point C D) point D E) point E

Why does popular democracy, as defined in the U.S. Constitution, contribute to long-term economic growth and political stability?

(a) It allows regular change in the structure of the government. (b) It provides incentive to invest, innovate and invent. (c) It permits the President of the U.S. to choose fiscal policies to advance contemporary mercantilism. (d) It transfers wealth from the extremely wealthy to the desperately poor.