In the classical model, beginning from an equilibrium in which the government is running a budget surplus
a. the supply of loanable funds will be horizontal
b. an increase in government spending will cause the interest rate to rise
c. the supply of loanable funds will be vertical
d. an increase in government spending will crowd out less than an equal amount of private spending
e. a decrease in government spending will crowd out less than an equal amount of private spending
B
You might also like to view...
Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing quantity is 40 units, the profit-maximizing price is $160, and the marginal cost of the 40th unit is $120 . If the good were produced in a perfectly competitive market, the equilibrium quantity would be 50, and the equilibrium price would be $150 . The demand curve and marginal cost curves are
linear. What is the value of the deadweight loss created by the monopolist? a. $40 b. $100 c. $200 d. $400
When there is a surplus in a market, prices are likely to fall because:
A.) Buyers do not wish to buy as much as sellers want to sell. B.) Some buyers will offer to pay a higher price, initiating a move up the supply curve. C.) Sellers are likely to increase their production. D.) Buyers will wait for the government to establish a price floor.
The problems of physical distance can be _____________ by technology which can serve to ___________ trade
A) increased; discourage B) reduced; enhance C) increased; enhance D) reduced; discourage
Rent control is more prevalent in
A. rural areas. B. suburbs. C. the Midwestern U.S. D. cities.