The existence of a liquidity trap implies that
A) a decrease in the interest rate might not increase investment spending.
B) an increase in the demand for money will be followed by an equal increase in the supply of money.
C) an increase in the supply of money may not lower interest rates.
D) a and c
C
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If the quantity demanded exceeds the quantity supplied, then there is
A) a shortage and the price is below the equilibrium price. B) a shortage and the price is above the equilibrium price. C) a surplus and the price is below the equilibrium price. D) a surplus and the price is above the equilibrium price.
If nation-states are able to extend effective control over ocean resources from 3 miles to 200 miles off their coasts, valuable marine animals are more likely to be harvested
A) at a rate consistent with their long-run preservation. B) at a rate inconsistent with their long-run preservation. C) too rapidly for maximum net benefit. D) too slowly for maximum net benefit. E) up to the point of extinction.
The above table describes the accounts for the country of Pacifica. Using this information, net exports for Pacifica equals
A) $100. B) $900. C) -$100. D) $650.
Some individuals choose to undertake risky prospects while others choose safer ones because they have different:
A. marginal utilities. B. degrees of transitivity. C. income elasticities. D. marginal rates of substitution between risk and reward.