In a Keynesian model, a temporary increase in government purchases would cause output to ________ and the domestic real interest rate to ________, in the short run.
A. remain unchanged; increase
B. increase; decrease
C. increase; increase
D. remain unchanged; decrease
Answer: C
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In September 1929, Roger Babson predicted the collapse of the stock market
Indicate whether the statement is true or false
If two goods are substitutes in consumption, a(n):
a. decrease in the price of one product will cause an increase in the demand for the other product. b. decrease in the price of one product will cause a decrease in the demand for the other product. c. increase in the price of one product will cause an increase in the supply of the other product. d. increase in the price of one product will cause a decrease in the supply of the other product. e. increase in the price of one product will cause a decrease in the demand for the other product.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and current international transactions become more positive (or less negative). b. There is not enough information to determine what happens to these two macroeconomic variables. c. The quantity of real loanable funds per time period rises, and current international transactions become more negative (or less positive). d. The quantity of real loanable funds per time period rises, and current international transactions remain the same. e. The quantity of real loanable funds per time period and current international transactions remain the same.
Medical care decisions involve costs as well as benefits. Which of the following statements is true?
a. Return on investment is important when considering any outlay. Often, a more relevant criterion in medical investment is the opportunity cost of the resources in terms of other beneficial uses of the same resources. b. There is no place for economic considerations in life-and-death situations. c. The challenge in applying economics to medical care decisions is that there are no good substitutes for medical care. d. Medical practitioners must not let cost become an issue when recommending treatment options.