Which of the following would not cause the investment demand curve to shift?
A. animal spirits (expectations)
B. technological change
C. change in business taxes
D. change in the interest rate
Answer: D
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A rent ceiling controls the rent portion of the cost of housing but not the search cost. So when the search cost is ________ the rent, some people end up paying a ________ opportunity cost for housing than they would if there were no rent ceiling
A) added to; lower B) subtracted from; higher C) subtracted from; lower D) added to; higher E) equal to; lower
Which of the following statements best describes the political control of the Federal Reserve?
a. Policy decisions of the Fed do not require congressional approval, and the president cannot ask for the resignation of a Federal Reserve governor as the president can with cabinet positions. b. Policy decisions of the Fed require congressional approval, but the president cannot ask for the resignation of a Federal Reserve governor as the president can with cabinet positions. c. Policy decisions of the Fed do not require congressional approval, and the president can ask for the resignation of a Federal Reserve governor as the president can with cabinet positions. d. Policy decisions of the Fed require congressional approval, and the president can ask for the resignation of a Federal Reserve governor as the president can with cabinet positions.
Refer to Figure 8.8. At the market price of $8 per bushel, if this farmer produces 700 bushels of soybeans, the total revenue would be A) $1,200. B) $2,800. C) $5,600. D) $8,400.
Using current services budgeting,
A. an increase in spending is spending greater than that needed to keep up with inflation. B. an increase in spending is spending greater than that needed to provide an unchanged level of services. C. an increase in spending is spending greater than last year's spending. D. all budgets revert to zero at the beginning of each fiscal year.