The net result of deflation is to:
A. increase consumption and decrease investment, increasing aggregate demand overall.
B. decrease consumption and increase investment, decreasing aggregate demand overall.
C. decrease consumption and investment, decreasing aggregate demand.
D. increase consumption and investment, increasing aggregate demand.
Answer: C
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Banks can make additional loans when required reserves are
A) less than total deposits. B) greater than total reserves. C) less than total reserves. D) less than total loans.
Which of the following is an example of a fiscal policy?
A) The federal government increases income tax rates on people earning more than $250,000. B) The Federal Reserve takes action to greatly decrease the money supply. C) The Federal Reserve increases interest rates. D) Businesses begin to export and import more products and services.
Which of these is an example of a controllable factor for a firm that sells pizzas
a. The price of the pizza b. The delivery rates of the pizza c. The quality of the wings sold by the street vendor across the street d. Both A & B
?An aggregate supply curve with a positive slope is associated with an economy in which:
A. ?input prices and final goods prices always change by the same amount. B. ?firms expect output prices to be unaffected by changes in input prices. C. ?nominal wages and salaries do not change much in the short run. D. ? firms expect consumer demand to be unaffected by changes in prices of final goods.