An increase in the government budget deficit shifts the demand for loanable funds to the right
a. True
b. False
Indicate whether the statement is true or false
False
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Aggregate demand increases if the quantity of money ________
A) decreases or tax rates increase B) or transfer payments decrease C) remains constant or tax rates increase D) increases or tax rates decrease
The nation of Futura has an actual capital-labor ratio which is in steady state. Futura will experience
A) no growth from convergence and the economy will remain on its balanced growth path. B) positive growth from convergence to keep the economy on its balanced growth path. C) positive growth from convergence, but the growth will be less than the balanced growth rate in order to remain on its balanced growth path. D) negative growth from convergence to offset the increase in the balanced growth rate in order to remain on its balanced growth path.
According to the classical model, total employment will increase when
a. the birth rate increases b. the government creates more jobs c. the labor force increases d. individuals receive more education e. there is a recession
Which of the following results in the greatest present value if the interest rate is 10%?
a. A perpetuity that pays $10 per year. b. One hundred dollars tomorrow. c. A payment of $111 at the end of this year. d. One hundred dollars today.