When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease.
B. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.
Answer: A
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Firms often seek to borrow money to expand their capital stock, and the price they pay for that money is the interest rate. What happens to quantity of money demanded if the interest rate increases?
a. It increases. b. It decreases. c. It does not change. d. Uncertain-the law of demand does not apply to money.
The U.S. government counts both cash income and in-kind transfers when determining the poverty rate.
Answer the following statement true (T) or false (F)
The largest merger in American corporate history was between _____ and ________.
Fill in the blank(s) with the appropriate word(s).
Which of the following is not directly counted in GDP?
A) investment expenditures B) government purchases C) intermediate goods D) consumer goods