Other things constant, a reduction in the real interest rate will
a. cause consumers to cut back on their purchases of durable items like automobiles.
b. induce businesses to increase their level of investment.
c. increase the natural rate of unemployment.
d. increase the actual rate of unemployment.
B
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The creation of markets that were previously "missing":
A. can create winners and losers. B. increases total surplus. C. benefits those who interact in the new markets. D. All of these are true.
Under socialism, which of the following industries would probably be owned by the government?
a. Steel. b. Electricity. c. Agriculture. d. All of these.
In "real business cycle" theory, as opposed to "traditional business cycle" theory, the govern- ment is viewed as an instrument to correct unevenness in economic growth caused by cycles
Indicate whether the statement is true or false
A decrease in the dollar price of the English pound will make
a. U.S. exports to England increase. b. U.S. exports less expensive for the English. c. imports from England more expensive for Americans. d. U.S. exports to England decrease.