If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to a sagging stock market, then:
a. Price index falls, and the change in real GDP is uncertain.
b. The change in price index is uncertain, and real GDP rises.
c. The change in price index is uncertain, and real GDP falls.
d. Neither the price index nor real GDP changes.
e. Price index rises, and real GDP rises.
.A
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Mortgages issued to individuals with low incomes and poor credit history are called
A) credit mortgages. B) teaser mortgages. C) subprime mortgages. D) income mortgages.
When the Fed decides to enact expansionary monetary policy, the supply of loanable funds:
A. and the demand for loanable funds both decrease. B. and the demand for loanable funds both increase. C. increases, while the demand for loanable funds decreases. D. decreases, while the demand for loanable funds increases.
The trade balance is
a. the services balance plus the current account balance plus the capital account balance b. merchandise exports minus merchandise imports c. the current account balance plus the capital account balance d. foreign purchases of domestic assets minus domestic purchases of foreign assets e. the services balance plus the capital account balance
Which of the following observations is true of the federal budget between 1960 and 2010?
a. The federal budget was in deficit in the early 1960s. b. Between 1960 and 1970 the federal budget deficit reflected a sharp increase. c. The federal budget was in surplus between 1970 and 1980. d. The federal budget deficit was the highest in the late 1990s. e. The federal budget deficit was lower than 600 billion dollars in 2010.