In a recession, the Fed's monetary policy aims to ________ the real interest rate, ________ aggregate demand, and ________ aggregate supply
A) decrease; increase; increase
B) decrease; increase; not change
C) increase; not change; increase
D) increase; increase; increase
E) increase; decrease; not change.
B
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The government budget constraint implies that
A) government borrowings = government spending+ transfers - taxes and user charges. B) government borrowings = taxes and user charges + government spending - transfers C) government spending = transfers - taxes and user charges - government borrowing. D) government spending = government borrowing - transfers - taxes and user charges
The perpetual problem in economics is:
a. our inability to work together effectively. b. our inability to satisfy everyone's wants with the available resources. c. a recognition of continual class differences. d. our inability to utilize resources efficiently. e. likely to be solved in resource-rich countries.