If economists forecast a decrease in aggregate expenditure, which of the following is likely to occur?
A) Inventories will fall. B) GDP will rise.
C) GDP will fall. D) Wages will rise.
C
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A bank has reserves of $50, deposits of $100, loans of $20, and government securities of $30. Assume the desired reserve ratio is 20 percent
a. What are the bank's assets and what are its liabilities? b. How much does the bank have in excess reserves? c. What can the bank do with its excess reserves that will affect the quantity of money?
Ed Sike is tired of working as a special events manager at the college. He quits his price-searcher job to devote himself to studying full time. Ed Sike is now
A) a price taker. B) a price giver. C) unemployed. D) no longer employed. E) All of the above.
Suppose that a bond is purchased at a discount (meaning that it is sold for less than face value). Could the yield to maturity ever be less than the coupon rate? Could the holding period return be less than the coupon rate? Explain.
What will be an ideal response?
A barrier to entry is
A) a term used to explain why monopolies always make economic profits. B) a restriction on the profits that a monopoly can make. C) the situation when the government produces a good instead of relying on private firms to produce the good. D) a restriction on starting a business.