The opportunity cost of something is the nominal price paid for the product
Indicate whether the statement is true or false
FALSE
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In the IS model, assuming that the real interest rate does not change, an increase in autonomous ________ leads to an increase in the equilibrium level of ________
A) investment; consumption B) consumption; investment C) net exports; investment D) all of the above E) none of the above
Assume Claudia's budget constraint is demonstrated by line A in the graph shown. Which of the following would cause Claudia's budget constraint to shift to line C?
A. The price of books dropped.
B. The price of movie tickets dropped.
C. Claudia's preferences for these two goods decreased.
D. Claudia’s income decreased.
Imposing a tariff brings about: a. higher prices and revenues to domestic producers. b. lower sales and revenues to foreign producers
c. higher prices to domestic consumers. d. all of the above
Suppose you get a tax refund of $4,000 and instead of spending it on items that had been on your wish list for two years, you put it all in your checking account at the First National Bank of Urbana. And if the legal reserve requirement was 20 percent, your cash deposit of $4,000 in the Urbana bank makes it possible for the banking system to potentially create (including your $4,000 . a total
amount of money of a. $800 b. $3,200 c. $4,000 d. $16,000 e. $20,000