1. If the aggregate consumption function shifts up, the level of income-expenditure equilibrium GDP will increase by an amount___________ than the increase of the consumption function.
Insert the missing word or phrase:
1. If the aggregate consumption function shifts up, the level of income-expenditure equilibrium
2. _____ _________ _________ - the increased costs associated with making transactions that arise from the public’s efforts to avoid the inflation tax.
3. Persistent budget deficits have long-run consequences because they lead to an increase in ______________ ___________.
4. Countries can fix exchange rates using ________ ________ ____________, which requires them to hold foreign exchange reserves that they use to buy any surplus of their currency.
5. When planned aggregate spending does NOT equal current GDP, there is a selfadjustment process that operates through __________ _________________.
6. The money supply expands when banks _______ _________ from the excess
reserves they hold.
7. The
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