In the classical view, if desired saving exceeds desired investment
A. the interest rate would decline.
B. government spending must fall.
C. the interest rate would increase.
D. government spending must rise.
Answer: A
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What was the crucial factor permitting cotton textile production to take off in New England between 1790 and 1815?
(a) The imposition of high tariff rates (b) A lowering of import tariffs by Britain (c) The blocking of trade with England through the Embargo and the War of 1812 (d) A relaxation of regulations restricting exports of machinery by Britain
A drought causes most fruit crops to fail, decreasing the amount of available fruit. The fruitcake market would see:
A. an increase in the supply of fruitcake. B. a decrease in the supply of fruitcake. C. no change in the supply of fruitcake, but the demand would increase. D. no change in the supply of fruitcake, but the demand would decrease.
The money created by the banking system when deposits in one bank result in deposits in other banks by way of the bank loan process tends to decrease the banking system's volatility
Indicate whether the statement is true or false
The demand curve facing a monopolistically competitive firm is generally
A. steeper than the demand curve that would face a perfectly competitive firm in the same industry. B. less elastic than the demand curve that would face a monopoly in the same industry. C. steeper and more elastic than the demand curve that would face a perfectly competitive firm in the same industry. D. flatter than the demand curve that would face a monopoly in the same industry.