In the above figure, if the budget line is the line DE, the consumer will maximize utility at point
A. A.
B. B.
C. C.
D. G.
Answer: B
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During an economic downturn, Keynes argued that businesses would:
A. not increase spending because of the sharp rise in interest rates. B. not increase spending even if interest rates fell all the way to zero. C. increase spending because interest rates would fall to zero. D. increase spending because of the sharp rise in interest rates.
According to the graph shown, if this economy were to open to trade, domestic producers would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. transfer surplus in area DE to consumers.
B. transfer surplus in area DE to foreign producers.
C. lose surplus in area FG to deadweight loss.
D. lose surplus in area FG to foreign producers.
Today, unions play a larger role in Europe than they do in the U.S
a. True b. False Indicate whether the statement is true or false
In December 2008, the Federal Reserve announced that it would take extraordinary measures to address the financial crisis in the economy. These measures include all of the followingexcept
A) buying mortgage-backed securities. B) buying long-term Treasury bills. C) creating other new credit facilities to make credit more easily available to households and small businesses. D) lowering the reserve requirement to encourage banks to create loans.