An increase in interest rates will cause
A. AS to increase (move down and to the right).
B. AD to increase (move to the right).
C. AD to decrease (move to the left).
D. AS to decrease (move up and to the left).
Answer: C
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Screening is when someone takes action to:
A. find out the opportunity cost of acquiring more information. B. reveal private information about someone else. C. reveal one's own private information. D. None of these statements is true.
An externality exists when
A) goods are sold in specific geographic locations. B) some of the benefits or costs associated with a good are borne by third parties. C) the government taxes a good. D) the government subsidizes a good.
Which of these nations has the highest rate of union membership (as a share of total employment)?
A) India B) the United States C) Japan D) Sweden
An increase in shipments of currency from the Federal Reserve to commercial banks will
A) increase the money supply. B) increase bank reserves. C) reduce bank reserves. D) have no effect on bank reserves.