Adding more resources to production causes
a. a downward movement along the production possibilities curve
b. the production possibilities curve to shift in toward the origin
c. an upward movement along the production possibilities curve
d. the production possibilities curve to shift out from the origin
e. the production possibilities curve to become positively sloped
D
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The world output is higher if the countries follow restrictive trade policies rather than free trade
a. True b. False Indicate whether the statement is true or false
Fannie Mae and Freddie Mac's dominance of the secondary mortgage market during 1995-2008 encouraged mortgage originators to
a. extend only 30-year, fixed-rate mortgages. b. require higher down payments in order to obtain a home mortgage. c. loosen lending standards as long as the mortgages were acceptable to Fannie Mae and Freddie Mac. d. scrutinize the credit-worthiness of borrowers more carefully.
If the MPC is 0.80 and the government increases transfer payments by $45 billion, then the initial fiscal stimulus will equal
A. $36 billion. B. $9 billion. C. $225 billion. D. $56.25 billion.
Only a ________ shift of the ________ curve can reduce unemployment and inflation at the same time.
A. leftward; AD B. rightward; AD C. rightward; AS D. leftward; AS