Which of the following will cause the supply curve of loanable funds to shift?
a) Incentives to save.
b) Business expectations.
c) Product demand.
d) Investment tax incentives.
Ans: a) Incentives to save.
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The monopolist's demand curve is
a. downward sloping and identical to the market demand curve b. downward sloping and identical to the marginal revenue curve c. downward sloping and lies below the marginal revenue curve d. a horizontal line at a price consistent with maximum profit e. a U-shaped curve that lies above the U-shaped ATC curve
If a government managed to reduce the time inconsistency problem by mandating that the central bank target inflation at a low rate, then
a. the long-run Phillips curve would shift right. b. the long-run Phillips curve would shift left. c. the short-run Phillips curve would shift up. d. the short-run Phillips curve would shift down.
Refer to Figure 18.1. With free trade, what is the equilibrium quantity of gloves in Duckland?
A. 100 B. 80 C. 60 D. 40
The multiplier will be smaller, other things being equal: a. the smaller the fraction of each dollar earned that goes to taxes
b. the larger the MPC. c. the smaller the fraction of each dollar of disposable income that goes to saving. d. None of the above are true.