Which of the following events would cause the interest rate to rise?
a. a decrease in the demand for loanable funds
b. an increase in the demand for loanable funds
c. an increase in the supply for loanable funds
d. a decrease in aggregate demand
B
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The actual government budget deficit ________ be used to determine the effectiveness of discretionary fiscal policy actions because ________
A) cannot; it excludes non-discretionary spending changes B) can; it includes non-discretionary spending changes C) cannot; it includes non-discretionary spending changes D) can; it excludes automatic stabilization expenditures
By providing free garbage removal, a community
a. discourages activities that produce detrimental externalities. b. encourages citizens to recycle items rather than throw them out. c. leads citizens to throw out more garbage than is socially optimal. d. None of the above is correct.
Suppose that Book-Cost Busters (BCB), without authorization, reproduced a best-selling novel and placed it for downloading on the BCB pay-for-use website. This action would violate the publisher's:
A. profit rights. B. patent. C. copyright. D. trademark.
The demand for loanable funds curve shows the relationship between the quantity of loanable funds demanded and
A) the capital stock. B) the expected rate of profit. C) the real interest rate. D) depreciation. E) the price level.