The product-variety externality states the benefits to consumers from the introduction of a new product
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following serves as the central bank for the United States?
A) the Federal Deposit Insurance Corporation B) the U.S. Treasury Department C) the Federal Reserve System D) the World Bank
Spending on the war in Afghanistan is essentially categorized as government purchases. How do increases in spending on the war in Afghanistan affect the aggregate demand curve?
A) They will shift the aggregate demand curve to the right. B) They will move the economy up along a stationary aggregate demand curve. C) They will move the economy down along a stationary aggregate demand curve. D) They will shift the aggregate demand curve to the left.
In a closed economy, if the goods market is in equilibrium, national saving is $2 trillion, national consumption is $7 trillion, and government purchases are $2.5 trillion, then GDP equals
A) $7 trillion. B) $9.5 trillion. C) $11.5 trillion. D) Not enough information has been provided to determine the answer.
From the perspective of households and businesses deciding where to deposit their money, the key advantage of the private loans issued by commercial banks is ________
A) transparency B) marketability C) incentive for the bank to collect information D) relatively high interest rates