True or False: An open-market purchase reduces the size of the monetary base and reduces the size of the money supply by even more. 

The government reduces that tax on labor income. As a result, the equilibrium level of employment ____. This is considered ____.

The government raises that tax on capital income. As a result, the equilibrium real interest rate ____. This is considered ____.

Suppose that the tax multiplier is -2.0. If the government reduces taxes by $0.4 trillion, Real GDP will ____.

True or False: Members of the Federal Reserve’s Board of Governors serve nonrenewable, 14-year terms.

The government reduces that tax on capital income. As a result, the equilibrium real interest rate ____. This is considered ____.

Real GDP Government Receipts Government Outlays $22.0 trillion $2.8 trillion $3.1 trillion $22.5 trillion $3.0 trillion $3.2 trillion $23.0 trillion $3.2 trillion $3.3 trillion $23.5 trillion $3.4 trillion $3.4 trillion $24.0 trillion $3.6 trillion $3.5 trillion Refer to the table above. The government experiences a “balanced budget” when Real GDP equals _____.

True or False: Cryptocurrencies are not included in the money supply, because they are not considered an asset. 

Suppose that the reserve requirement is 12.5% and that commercial banks are NOT holding excess reserves. If the Federal Reserve wishes to reduce the money supply by $200 billion, it should conduct an ____.

When Real GDP and incomes in the economy are falling, government tax receipts ____, which is considered ____.