According to the intertemporal substitution effect, a higher price level
A) decreases the quantity of real GDP demanded.
B) lowers the costs of building new plants and equipment.
C) increases the quantity of real GDP demanded.
D) makes it less costly for people to buy houses and cars.
A
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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.
In which countries are incomes distributed most unequally and least unequally?
What will be an ideal response?
The money supply is
A) the rate at which the Federal Reserve Board prints currency. B) limited to currency and coins. C) the amount of money in circulation. D) the rate at which the Federal Reserve Board creates money.
As a result of a decline in interest rates and a rise in household income, the demand curve for housing has shifted to the right, but has retained the same slope. Consequently, the elasticity of demand for housing
a. has declined. b. has increased. c. has remained unchanged. d. cannot be compared.