When interest rates come down,
a. people on average are better off since borrowing is now less expensive.
b. people on average are worse off since the income of lenders will now decrease.
c. social welfare is left unchanged since what borrowers gain is exactly offset by what lenders lose.
d. people on average may or may not be better off, depending on how high the rate was to begin with.
c. social welfare is left unchanged since what borrowers gain is exactly offset by what lenders lose.
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A plan that sets targets to cover all major aspects of the national economy is known as a/an _____ plan:
(a) interindustry (b) complete (c) comprehensive (d) economic
Credit card balances are: a. included in both M1 and M2
b. included in M1 but not M2. c. included in M2 but not M1. d. not included in either M1 or M2.
Regarding poverty in U.S. society, it is correct to say that: a. Poverty affects a relatively small number of Americans. b. Poverty results from a failure to work hard
c. Most of the poor live in inner cities. d. None of these statements is true.
Suppose demand decreases and supply increases. Which of the following will happen?
a. Equilibrium price will rise, fall, or stay the same while equilibrium quantity will decrease. b. Equilibrium price will rise, fall, or stay the same while equilibrium quantity will increase. c. Equilibrium quantity will rise, fall, or stay the same and equilibrium price will increase. d. Equilibrium quantity will rise, fall, or stay the same while equilibrium price will decrease. e. The change in equilibrium price and quantity cannot be determined.