If government spending and taxes decrease by the same amount,
A) the IS curve does not shift.
B) the IS curve shift leftward.
C) the IS curve shifts rightward.
D) the LM curve shifts downward.
B
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As the housing bubble began to collapse, the wave of initial foreclosures led to:
A. banks no longer offering refinancing as an option, and home sales slowed. B. more foreclosures due to the herd instinct. C. more household saving in other forms. D. banks flooding the market with homes for sale, further depressing their price.
Which of the following is not a true barrier to human capital development in poor nations?
A. Illiteracy. B. Prohibitive costs to meet basic needs. C. Inequality trap. D. Access to health care professionals.
Suppose Vinnie is looking for a month-long vacation rental in San Diego. The first vacation rental Vinnie finds costs $800 per month. If he looks for another vacation rental, there's a 75 percent chance he'll find another one for $800 per month and a 25 percent chance he'll find one for $600 per month. Other than price, all of the vacation rentals are identical. Vinnie's marginal cost of searching for an additional vacation rental is $45. Since searching for another apartment is a ________ gamble, if Vinnie is risk-neutral, then he ________ search for another apartment.
A. better-than-fair; will not B. fair; will not C. fair; will D. better-than-fair; will
Credit cards:
A. are financial assets. B. create money. C. create the need to hold highly liquid assets. D. reduce the value of holding money.