Macroeconomics often relies on microeconomic analysis because
A) microeconomics is older than macroeconomics.
B) microeconomic theory can be tested and macroeconomic theory cannot be tested.
C) all aggregates are made up of individuals and firms.
D) the effects of macroeconomic subjects such as inflation and unemployment are independent of individual consumers and firms.
Answer: C
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Which of the following illustrates a burden of the national debt?
A) Future generations will have to pay lower taxes to finance the national debt. B) A large debt decreases the amount of capital, thereby decreasing future incomes. C) The current generation receives a higher level of government services. D) The current generation pays a higher level of taxes.
The Open Market Trading Desk is
A) another name for the Federal Open Market Committee. B) an organization of private traders in government securities. C) the area on the floor of the New York Stock Exchange set aside for bond trading. D) a group of private securities traders that the Fed has selected to participate in open market operations.