The economy of Kiwiland can be characterized by Equation 24.6.EQUATION 24.6:C = 1,000 + 0.5YdT = 200G = 400I = 500Refer to Equation 24.6. If government spending in Kiwiland increases by 400, equilibrium output increases by
A. 400.
B. 800.
C. 1,600.
D. 2,000.
Answer: B
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Federal deposit insurance in the United States began in
A) 1864. B) 1933. C) 1968. D) 1984.
Which of the following is a correct listing of money's functions?
A) source of credit, value of transaction costs, unit of barter B) medium of barter, medium of exchange, medium of transactions C) unit of barter, unit of account, a unit of income D) store of value, store of exchange, measure of account E) store of value, medium of exchange, unit of account
If a person uses money to buy a pair of shoes, money is functioning as
A) a unit of account. B) a store of value. C) a medium of exchange. D) none of the above
Price ceilings and price floors
A) shift demand and supply curves and therefore have no effect upon the rationing function of prices. B) interfere with the rationing function of prices. C) make the rationing function of free markets more efficient. D) cause surpluses and shortages, respectively.