When the government runs a large deficit,
A) the supply of loanable funds will shift rightward.
B) the supply of loanable funds will shift leftward.
C) the demand for loanable funds will shift rightward.
D) the demand for loanable funds will shift leftward.
E) taxes must rise.
C
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Technical analysts in the financial markets are those who
a. believe that markets always operate efficiently. b. look for stocks to buy based on the degree to which the company is investing in technology. c. argue that a careful study of past prices of a given stock conveys useful information about future prices. d. base their analyses on the current state of the macroeconomy.
The smaller the MPC the ________ the expenditure multiplier and the ________ the effect of a change in expenditure on equilibrium output.
A. larger; smaller B. larger; larger C. smaller; smaller D. smaller; larger
Exhibit 13-3 A monopolist
In Exhibit 13-3, if this industry is regulated and the regulatory commission wants revenue to just cover cost, the proper price and output combination to be set is:
A. price = $10; output = 25. B. price = $8; output = 30. C. price = $5; output = 40. D. price = $4; output = 25.
Referring to the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, which box should be filled with the label PI* for the macroeconomic equilibrium level of the price index? 
A. Box 2 B. Box 6 C. Box 5 D. Box 1