Refer to the given information. The expected rate of return curve:
Answer the question on the basis of the following information for a private closed economy.
Assume that for the entire business sector of the economy there is $0 worth of investment
projects that will yield an expected rate of return of 25 percent or more. But there are $15
worth of investments that will yield an expected rate of return of 20-25 percent; another $15
with an expected rate of return of 15-20 percent; and similarly an additional $15 of investment
projects in each successive rate of return range down to and including the 0-5 percent range.
A. shows a direct relationship between the interest rate and investment.
B. is also the investment demand curve.
C. is indeterminate.
D. implies a direct (positive) relationship between the interest rate and the level of GDP.
B. is also the investment demand curve
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Expansionary monetary policy:
A. decreases the interest rate and increases the price level. B. decreases the interest rate and decreases the price level. C. increases the interest rate and increases the price level. D. increases the interest rate and decreases the price level.
Congress initially intended for the Medicaid program to provide basic safety net coverage for certain vulnerable populations, including all the following but one.
a. Disabled individuals less than 65 b. Working age adults without dependents c. Single, pregnant women with or without dependents d. Single men with dependents e. Children in low-income households
Which of the following events would result in a greater demand for U.S. dollars in the foreign exchange market, ceteris paribus?
A. An increase in interest rates in the United States. B. Higher tariffs imposed by the United States on imports. C. Higher quotas imposed by the United States on imports. D. An increase in interest rates in Japan.
An economic analysis of the relationship between proposed legislation affecting major employers in each state and the voting patterns of senators and representatives in Congress on that legislation would fit within the subcategory of economics called:
A. the economics of fiscal policy. B. public choice theory. C. behavioral economics. D. monetarism.