An increase in the price level in an economy will decrease the real GDP demanded along the aggregate demand curve.
a. true
b. false
a. true
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Which of the following individuals is most likely to purchase a life insurance policy that pays out an annual income beginning at a certain age until the individual's death?
A) Alma, who expects to live a long life, based on her family history B) Avril, a tax attorney who wants to avoid adverse selection C) Bradley who has six young children D) Ian, who expects to have a short life expectancy because of an illness
The current Medicare system is designed so that it actually encourages
A) cost reductions. B) higher costs of medical services. C) higher costs only for surgeries. D) lower drug costs for recipients.
Why does the money multiplier measure potential money creation rather than guaranteed money creation?
a. Borrowers may spend all the money they acquire through a loan. b. The money is not real until it is deposited or spent. c. Some banks may choose to keep some of their new deposits in their reserves. d. Borrowers may deposit their loan money into checkable rather than demand deposits.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A. -2/3. B. -1.5. C. -3. D. -30.