In a binding situation
A. planned investment increases when the price level decreases.
B. output increases when the price level decreases.
C. planned investment and output both increase when the price level decreases.
D. neither planned investment nor output change when the price level decreases.
Answer: D
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Suppose that the profit maximizing level of output for the monopolist is 100 units, and ATC = $45.00; MC = $35.00; MR = $35.00; P = $50.00. What is the monopoly's profit?
A) -$1000 B) $4500 C) $5000 D) $500
The monetary approach basically looks at as the fundamental variable affecting exchange rates.
a. interest rates; short-run b. interest rates; long-run c. the price level; short-run d. the price level; long-run
Answer the following statement(s) true (T) or false (F)
1.A bank with a reserve requirement of 12 percent has a money multiplier of 12. 2.The money multiplier allows a bank to calculate exactly how much money will be generated from a given deposit. 3.The Federal Reserve System is a publicly owned entity. 4.The members of the Federal Reserve Board of Governors are chosen by the Board’s chairman. 5.Most of the decisions influencing changes in the money supply are made by the heads of the 12 banks that make up the Federal Reserve System.
Based on the graph showing how the subprime share of home mortgages grew rapidly before the big decline, the share of subprime loans began its steepest climb ______.
a. about the same time adjustable mortgage rates bottomed-out
b. about three years after adjustable mortgage rates bottomed-out
c. about three years before adjustable mortgage rates bottomed-out
d. about the same time adjustable mortgage rates began to decrease