Other things equal. an open market purchase of government securities by the Fed will not result in which of the following?
a. increased bond prices
b. a reduced volume of loans issued by the commercial banking system
c. decreased interest rates
d. an increase in the price level
b
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A firm's total product curve shows that at first it has
A) economies of scale and then diseconomies of scale. B) diseconomies of scale and then economies of scale. C) increasing marginal returns and then diminishing marginal returns. D) diminishing marginal returns and then increasing marginal returns.
Which of the following statements is (are) incorrect?
a. Consumption plays a central role in the Keynesian theory of income determination b. Consumer expenditure is the largest component of aggregate demand c. In recent years, consumption has totaled between 60 and 70 percent of GDP d. Keynes believed that investment was largely determined by expectations e. all of the above are correct