When government decides to increase spending, interest rates generally ________ and this change in interest rates ________ investment spending
A) increase; increases
B) increase; decreases
C) decrease; increases
D) decrease; decreases
B
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The observation that consumer purchases of walnuts decline as the price rises reflects:
a. a decrease in demand. b. the law of demand. c. an increase in demand. d. the law of supply.
In the last few decades, income inequality in the United States has ___________ mostly because of the ____________
A. increased; poor getting poorer. B. increased; gains by the rich. C. decreased; gains by the poor. D. decreased; stagnation by the economy in general.
As Jamal's income rises, his demand for pizza does not change. It follows that, for Jamal, pizza is a(n)
A) normal good. B) inferior good. C) neutral good. D) substitute good. E) complementary good.
Exhibit 20-4 Aggregate demand and supply model
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In Exhibit 20-4, which one of the following actions could the Fed use to shift the AD curve from AD1 to AD2?
A. raise the legal reserve requirement B. lower the discount rate C. increase the federal funds rate D. sell government securities