In the long-run ISLM model and with everything else held constant, an increase in the money supply leaves the level of output and interest rates unchanged, an outcome called
A) interest rate overshooting.
B) long-run money neutrality.
C) long-run crowding out.
D) the long-run Phillips curve.
B
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Savings is an important factor influencing economic growth because saving
A) can finance new investment and capital formation. B) helps the economy maintain the current level of total expenditures when a recession begins. C) provides a fund for wages needed from any unexpected population growth. D) All of the above answers are correct.
Which of the following is true?
a. in recent decades, the rich countries of the world have consistently grown more rapidly than poor countries. b. no LDC was able to achieve a more rapid growth rate than the United States during the 1980 through 2005 period. c. during recent decades, most LDCs have stagnated economically. d. during 1980 through 2005, the fastest growing countries in the world were mostly LDCs.
Why is oligopoly likely to be present in industries that see significant positive network effects?
What will be an ideal response?
?For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of adverse selection?
a. After the loan has been made, individuals become careless with their finances
b. Individuals most likely to default are the ones most likely to apply for the loan
c. Borrowers investing their loan proceeds differently than the bank requires
d. None of the above