A temporary increase in government purchases would ________ the domestic real interest rate and ________ net desired saving (desired saving less desired investment) in the economy
A) lower; increase
B) lower; decrease
C) raise; increase
D) raise; decrease
D
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________ is fixed when moving along the aggregate supply curve
A) The real wage rate B) Real GDP C) Employment D) The price level E) The money wage rate
Assume that excess reserves are $10 million, demand deposits are $500 million, and total reserves are $135 million. The required reserve ratio is
A) .05. B) .1. C) .2. D) .25.
With an increase in income, the consumer will maximize utility on a new indifference curve that represents a higher level of utility
a. True b. False Indicate whether the statement is true or false
What is the opportunity cost of economic growth?
a. investment in the current time period b. improved technology in the current time period c. capital goods in the current time period d. consumption in the current time period