Refer to the figure above. Which of the following statements is true when the credit demand curve is CD2 and the credit supply curve is CS1?
A) At all rates of interest below 7% there will be an excess demand for credit.
B) At all rates of interest below 5% there will be an excess demand for credit.
C) At all rates of interest below 6% there will be an excess demand for credit.
D) At all rates of interest below 8% there will be an excess demand for credit.
B
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Discuss the meaning of the phrase of supply-side economics, discussing how it is similar and different from the traditional classical model. Make sure to discuss the role of the Laffer curve in supply-side theory
What will be an ideal response?
If the Consumer Price Index (CPI) increases from 100 to 125 and the nominal wage increases from $125 to $300, what is the change in the real wage?
a. +$175 b. +$300 c. +$125 d. +$115 e. -$175
As any firm with decreasing returns to scale increases its output:
A. its average cost of production must rise. B. its average cost of production must fall. C. its total cost of production must fall. D. its marginal cost of production must rise.
The tax multiplier is the number that, when multiplied by the
A) budget deficit, gives us the change in total spending. B) budget deficit, gives us the change in the public debt. C) change in taxes, gives us the change in total spending. D) change in government spending, gives us the change in total spending.