Crowding out refers to the government's increased demand for credit, which:
a. displaces some private sector consumption by decreasing the price level.
b. displaces some private sector borrowing by decreasing the interest rate.
c. displaces some private sector borrowing by increasing the interest rate.
d. hires labor away from the private sector
e. displaces some import purchases by the private sector.
c
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The seasonally adjusted unemployment rate
A) reports only seasonal unemployment. B) removes the seasonal variation from the unemployment rate. C) is impossible to compute since no one knows what the seasonal component equals. D) is another name for structural unemployment.
Assume that Michaela purchases $12,000 worth of a stock. To do so she uses $2,000 of her own money and borrows the remaining $10,000 at an 8.0% interest rate. If the stock's value increases by 20% in one year and she sells the stock at that time, what is her rate of return?
a. 13% b. 16% c. 20% d. 80%
In a fractional-reserve banking system, a bank
a. does not make loans. b. does not accept deposits. c. keeps only a fraction of its deposits in reserve. d. None of the above is correct.
Refer to the graph shown. The welfare cost of monopoly is given by:
A. area A. B. area B. C. areas A and B. D. areas C and D.