When the Fed buys bonds in the open market, in the product market (the aggregate demand- aggregate supply model),
A) real GDP will fall and the price level will rise.
B) real GDP and the price level will rise.
C) real GDP and the price level will fall.
D) real GDP will rise and the price level will fall.
Ans: B) real GDP and the price level will rise.
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Countries are concerned about small changes in their average annual growth rates in per capita income because
A) growth rates are a factor in U.N. participation. B) the power of compounding means small changes have large effects over time. C) growth rates tend to decline over time. D) the faster a country grows today, the less it will be able to consume in the future.
Refer to the table above. Is the United States a debtor or a creditor nation in 2019?
A) a debtor nation B) neither a creditor nor debtor nation C) a creditor nation D) both a creditor nation and a debtor nation E) More information is needed to determine if the United States is a debtor or creditor nation.