If the price elasticity of demand for insulin is equal to zero then the demand curve for insulin is
A) horizontal.
B) downward sloping.
C) curvilinear.
D) vertical.
Answer: D
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Financial intermediaries are important because
A) they bring lenders and borrowers together in a way that lowers transaction costs. B) they employ large numbers of people. C) they provide large funds to the stock market. D) they increase costs for banks.
All of the following would stimulate economic growth EXCEPT
A) decreasing taxes on consumption (for instance, decreasing a sales taxes) and increasing income taxes. B) subsidizing basic research. C) decreasing tuition charges at state universities. D) encouraging international trade.
How is a rise in confidence reflected in the aggregate supply/aggregate demand model?
a. Because a rise in confidence is associated with higher consumption and investment demand, it will lead to an inward shift in the AD curve and shift equilibrium from E0 to E1, a higher quantity of output and a higher price level. b. Because a rise in confidence is associated with higher consumption and investment demand, it will lead to an outward shift in the AD cur and shift equilibrium from E0 to E1, a higher quantity of output and a higher price level. c. Because a rise in confidence is associated with higher consumption and investment demand, it will lead to an outward shift in the AD curve and shift equilibrium from E0 to E1, a higher quantity of output and a lower price level. d. Because a rise in confidence is associated with higher consumption and investment demand, it will lead to an inward shift in the AD cur and shift equilibrium from E0 to E1, a higher quantity of output and a lower price level.
Which of the following is an exogenous variable in the Three-Sector-Model?
a. Open market operations b. Real Domestic GDP c. GDP price index d. Real risk-free interest rate e. Quantity of real credit per time period