In the simple liquidity preference model, if the money demand curve is elastic, then:
A. small changes to the money supply will cause large changes to the interest rate.
B. only large changes to the money supply will cause large changes to the interest rate.
C. small changes to the money supply will cause insignificant changes to the interest rate.
D. even large changes to the money supply will cause small changes to the interest rate.
C. small changes to the money supply will cause insignificant changes to the interest rate.
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The Ricardo-Barro effect argues that the crowding-out effect
A) is the result of the government budget deficit and higher interest rates. B) will occur, because the private saving supply will change to offset any change in the government budget deficit. C) is stronger when the government runs a budget surplus than when it runs a budget deficit. D) is the result of a government budget surplus and higher interest rates. E) will not occur, because the private saving supply will change to offset any change in the government budget deficit.
Which is NOT an example of signaling high quality in a social setting
a. wearing a business suit on a job interview b. leaving a big tip for the waiter after a dinner date c. offering a cheap engagement ring to your bride d. Visiting the beauty salon before a big date
Common property resources ____ rival ____ excludable
a. are, and are b. Are, but are not c. Are not, but are d. Are not, and are not
The largest component of GDP is
a. tax revenue b. government purchases of goods and services c. the nation's capital stock d. private investment spending e. private consumption expenditures