If interest rates increase, what is most likely to happen to the total expenditure schedule?
a. It will increase because G increases.
b. It will decrease because I decreases.
c. It will decrease because (X - IM) decreases.
d. It will increase because I increases.
b
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In the economic way of thinking, "scarcity" is another way of saying
A) "regret." B) "responsibility." C) "unsustainable." D) "sacrifice." E) "waste."
In the circular flow model of an economy, households
A) receive income from buyers of goods and services. B) receive income from the sale of factors in the goods markets. C) pay firms for the use of their factors. D) receive income from producers for the use of factors in the factor markets.
How much is a bond that pays $80 in coupon payments for 4 years and $1,000 at the end of the fourth year worth if the interest rate is 6%?
A) $855.46 B) $1,045.56 C) $1,069.30 D) $1,140.00
Fractional reserve banking is a system in which
A) depository institutions pay a fraction of advertised interest rates. B) a fraction of banking services must be provided by depository institutions. C) depository institutions hold a fraction of total deposits in reserve. D) the money supply is a set fraction of the U.S. gold reserves.