An expansionary fiscal policy is likely to result in the Treasury
A) selling more bonds, the prices of bonds falling, and interest rates falling.
B) buying more bonds, the prices of bonds rising, and interest rates falling.
C) selling more bonds, the prices of bonds rising, and interest rates rising.
D) selling more bonds, the prices of bonds falling, and interest rates rising.
Ans: D) selling more bonds, the prices of bonds falling, and interest rates rising.
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Which of the following variables can be used to measure labor productivity?
A) real GDP B) number of labor hours C) number of workers D) all of the above
The table above gives a nation's investment demand and saving supply schedules. It also has the government's net taxes and expenditures. The loanable funds market is in equilibrium when the real interest rate is
A) 7 percent B) 4 percent. C) 3 percent D) 6 percent. E) 5 percent.