If an increase in the growth rate of AD leads to an increase in real GDP in the short run:
a. the increase in AD was correctly anticipated
b. the increase in AD was greater than anticipated.
c. the increase in AD was less than anticipated.
d. the increase in AD could have been any of the above.
b
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Which of the following is NOT an example of a backup line of credit?
A) loan commitments B) overdraft privileges C) standby letters of credit D) mortgages
An inverse relationship will be graphed as
A) a line that is upward sloping. B) a line that is downward sloping. C) a loop. D) a U-shaped curve.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Crowding out is a decrease in private investment caused by:
A. Increased taxation by the government B. Increased borrowing by the government C. Increased consumer spending by households D. Increased exports to buyers in other nations