Mortgage
What will be an ideal response?
A loan to purchase a home or other real estate
You might also like to view...
Figure 3-17
Refer to . Area C represents
a.
the decrease in consumer surplus that results from a downward-sloping demand curve.
b.
consumer surplus to new consumers who enter the market when the price falls from P2 to P1.
c.
the increase in producer surplus when quantity sold increases from Q2 to Q1.
d.
the decrease in consumer surplus to each consumer in the market when the price increases from P1 to P2.
v
shift to the left or right for supply: cost of input falls
What will be an ideal response?
A government is currently operating with an annual budget deficit of? $40 billion. The government has determined that every ?$10 billion reduction in the amount of bonds it issues each year would reduce the market interest rate by 0.10 percentage point.? Furthermore, it has determined that every 0.10 ?(?one-tenth?) percentage point change in the market interest rate generates a change in planned investment expenditures in the opposite direction equal to ?$5 billion. The marginal propensity to consume is 0.80. ?Finally, the government knows that to eliminate an inflationary gap and take into account the resulting change in the price? level, it must generate a net leftward shift in the aggregate demand curve equal to ?$60 billion.
Assuming that there are no direct expenditure offsets to fiscal? policy, how much should the government increase? taxes? ?$40.00 billion.?(Enter your response rounded to two decimal? places.)
________ is(are) an example of selling externality rights.
A. Having the damaged party avoid the damage B. Auctioning the right to buy a car each year C. Direct regulation of externalities D. Government imposed taxes and subsidies