Interest rate
What will be an ideal response?
when interest rates are low, borrowers will find it easier to pay back loans so they will borrow more and spend more when interest rates are high, borrowers borrow less and therefore spend less
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What is meant by the expected rate of return?
What will be an ideal response?
Assume perfect capital mobility and a fixed exchange rate system. Then, an increase in government spending would shift the
a. LM schedule to the left. b. BP schedule to the right. c. BP schedule to the left. d. IS schedule to the right.
Beneficial externalities would be removed if the recipients of the benefit paid the producer of the externality
a. True b. False Indicate whether the statement is true or false
Cities and towns mainly rely for revenue on
a. property taxes. b. income taxes. c. excise taxes. d. payroll taxes.