As the real interest rate rises, the quantity of loanable funds supplied ________ and the quantity of loanable funds demanded ________
A) does not change; does not change
B) decreases; decreases
C) increases; decreases
D) increases; increases
E) decreases; increases
C
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All of the following would be included in aggregate expenditure except
A. social security payments. B. changes in inventories. C. sales of domestically produced goods to foreigners. D. purchases of services provided by government employees.
In response to an adverse supply shock, suppose the Fed implements accommodating monetary policy. Which of the following occurs as a result of the accommodating monetary policy?
a. Aggregate demand shifts to the left, which increases inflation and increases unemployment in the short run. b. Aggregate demand shifts to the left, which decreases inflation and increases unemployment in the short run. c. Aggregate demand shifts to the right, which increases inflation and increases unemployment in the short run. d. Aggregate demand shifts to the right, which increases inflation and decreases unemployment in the short run.
Refer to the accompanying figure. Assume the market is originally at point W. Movement to point X is the result of: 
A. an increase in demand and an increase in quantity supplied. B. an increase in supply and an increase in quantity demanded. C. an increase in supply and an increase in demand. D. a decrease in supply and an increase in quantity demanded.
If a nation has a(n) _____ in the production of an item, it can produce _____ of the item with the same quantity of resources than can other nations.
A. absolute advantage; more B. mutual gain; the same amount C. special advantage; more D. comparative advantage; more