In a free market, the price of housing adjusts to eliminate the shortages that give rise to undesirable landlord behavior
a. True
b. False
Indicate whether the statement is true or false
True
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All else equal, an increase in the government's budget deficit accompanied by a decrease in corporate taxes would definitely result in
A) an increase in the equilibrium real interest rate. B) a decrease in the equilibrium real interest rate. C) an increase in the equilibrium level of saving and investment. D) a decrease in the equilibrium level of saving and investment.
Suppose that there is an increase in the demand for money. What is the appropriate monetary policy response in the New Keynesian sticky price model?
A) an increase in the interest rate target B) no change in the interest rate target C) a decrease in the interest rate target D) an increase in government spending
A credit constraint is:
A. the inability to get a loan even though a person expects to be able to repay the loan plus interest. B. the inability to repay a loan even though a person has acceptable credit history. C. the ability to take on more loans than one can repay. D. the maximum amount of load one is entitled to take.
Describe at least three of the key concepts in economics introduced in Chapter 1 of the textbook that define how an economist views the world