"Expansionary fiscal policy is always 100 percent effective when the short-run aggregate supply curve is horizontal." Is this statement TRUE?
A) yes, because theoretically nothing else can offset the effects of fiscal policy
B) yes, when the long-run aggregate supply curve is horizontal too
C) no, because crowding out could take place
D) no, because the increased spending may cause the price level to increase
C
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Which of the following holds member bank reserve balances?
a. Department of Commerce b. Treasury Department c. Federal Open Market Committee d. Federal Advisory Council e. Federal Reserve Banks
In the goods market:
A. businesses produce goods and services and sells them to households and government. B. government produces goods and services and supplies them to households and businesses. C. households supply factors of production to businesses and are paid by businesses for doing so. D. households supply goods to businesses and are paid by businesses for doing so.