Which of the following would you expect to increase the equilibrium interest rate?
A) an increase in the budget deficit
B) a decrease in the profitability of investment projects firms are considering
C) a change from an income tax to a consumption tax
D) an increase in the percentage of income after net taxes that households save
Figure 21-1
A
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Refer to Table 7-6. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many belts will Estonia gain compared to the "without trade" numbers?
A) 0 B) 10 C) 40 D) 50
The type of policy that involves interest rates and the availability of loanable funds is known as:
A) fiscal policy. B) monetary policy. C) strategic financial policy. D) federal policy.
Zero lower bound refers to the fact that
A) the government budget deficit must be zero in the long run. B) the lowest possible level of the current account deficit is zero in the long run. C) the inflation rate can never decline below zero. D) nominal interest rates cannot fall below zero.
Monopoly firms may lead to higher costs than perfectly competitive firms.
Answer the following statement true (T) or false (F)