If people (who used to neither borrow nor save) are now borrowing to put their kids through college, then this will cause the equilibrium interest rate
A. to fall.
B. to fluctuate wildly.
C. to rise.
D. to remain constant.
Answer: C
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The long-run supply curve of a perfectly competitive industry is horizontal
a. in an increasing-cost industry b. in a decreasing-cost industry c. if the short-run supply curves for firms are upward-sloping d. if the short-run market supply curve is negatively sloped e. in a constant-cost industry
Macland is specializing and trading with Microland. Where will Macland be on its production possibility frontier?
a. It will be on the PPF. b. It will be inside the PPF. c. It will be outside of the PPF. d. It will be shifting the PPF out.
If the economy is currently in a recessionary gap, the SRAS curve intersects the AD curve to the left of Natural Real GDP
Indicate whether the statement is true or false
Nominal GDP increases
What will be an ideal response?