A leftward shift of the savings curve CANNOT be caused by a(n):
A. positive shock to consumption.
B. increase in the government budget deficit.
C. reduction in taxes.
D. increase in the real interest rate.
Ans: D. increase in the real interest rate.
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If the central bank can act as a lender of last resort during a banking panic, banks can
A) call in their loans to their customers and eventually restore the public's faith in the banking system. B) satisfy customer withdrawal needs and eventually restore the public's faith in the banking system. C) borrow more and more money from the central bank, and this will lower its reserves and decrease the public's faith in the banking system. D) encourage the public to borrow directly from the central bank, and this will worsen the banking panic.
In economics, the total amount received for selling a good or service is referred to as
A) revenue. B) factor payments. C) profit. D) capital gains.
In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
a. inventory is unchanged. b. inventory is accumulated. c. employment decreases. d. GDP increases.
Refer to the information provided in Table 33.1 below to answer the question(s) that follow. Table 33.1
Refer to Table 33.1. For both countries to benefit from trade, the terms of trade must be between ________ bushel(s) of oranges to bushel(s) of bananas.
A. 2:3 and 2:1 B. 1:1/2 and 1:4 C. 1:1 and 1:2. D. 1:1 and 1:1/2