Which of the following would cause the IS curve to shift to the left?
A) an increase in government expenditures
B) a decrease in the money supply
C) an increase in domestic investment
D) a decrease in taxes
B
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What is a business cycle? What are its phases and turning points?
What will be an ideal response?
The risk premium of corporate bonds typically increases
A) when the average price of corporate bonds increase. B) during a recession. C) when the interest rates on corporate bonds decreases. D) when the risk premium on treasury bonds increases.
If the demand function for orange juice is expressed as Q = 2000 - 500p, where Q is quantity in gallons and p is price per gallon measured in dollars, then the demand for orange juice has a unitary elasticity when price equals
A) $0. B) $1. C) $2. D) $4.
In the context of stock markets, "the tail wags the dog" means that the failure of the stock market can drag down the entire economy
a. True b. False Indicate whether the statement is true or false