Monetary policy is ________ it was in the past ________ the income effect of an interest rate change on consumption has increased.
A. more effective than; even though
B. more effective than, because
C. equally effective as; even though
D. less effective than; because
Answer: D
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Explain how each of the following events would affect the supply of loanable funds curve:
a. The economy is in a recession so people's disposable income is lower. b. The stock market is booming so people's wealth is higher. c. The future looks a bit more grim, so expected future income is lower. d. The real interest rate increases.
In the figure above, if the market is at equilibrium, then the total consumer surplus equals the area ________ and the total producer surplus equals the area ________
A) A; B B) B; C C) C; B D) A; C E) A + B; C
Recall some historical facts from the chapter: Which of the following firms grew primarily through vertical mergers?
a. Exxon b. American Can c. General Electric d. Anheuser-Busch e. American Tobacco
Elizabeth Rodriguez is a veterinarian at the Cincinnati Zoo. She produces a(n)
a. nonexcludable good b. transfer c. public good d. merit good e. entitlement