Which of the following is NOT true of the interest rate channel?
A) Bank loans play no special role.
B) The Fed changes the real interest rate which affects the components of aggregate expenditures.
C) Borrowers are indifferent as to how and from whom they raise funds.
D) Alternative sources of funds are not substitutes for each other.
D
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Refer to the figure above. What is the producer surplus before Barylia opens up to free trade?
A) $125 B) $250 C) $400 D) $325
The relative concept of poverty means that poverty will never be eliminated
a. True b. False Indicate whether the statement is true or false
If the government allowed a free market for transplant organs such as kidneys to exist, the
a. shortage of organs would be eliminated, and there would be no surplus of organs. b. shortage of organs would be eliminated, but a surplus of organs would develop. c. shortage of organs would persist. d. overall well-being of society would remain unchanged.
If a country had a trade surplus of $100 billion and then its exports rose by $40 billion and its imports rose by $30 billion, its net exports would now be
a. $110 billion b. $90 billion. c. $70 billion. d. $60 billion.