If the deficit is falling, the national debt will be ________.
Fill in the blank(s) with the appropriate word(s).
rising (although at a slower rate)
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How does a change in the price level influence the AE curve and the AD curve?
What will be an ideal response?
Suppose that Tracy Stuart spends all of her income on two goods, A and B, in a manner in which MUa = 15 and MUb = 80, and the Pa = $5 and the Pb = $20 . Then she
a. is already maximizing her total utility and should make no change b. should increase her purchases of B and decrease her purchases of A c. should raise MUa so that the MUa/Pa ratio is higher, giving her reason to buy more of A and less of B d. should raise MUa so that the MUa/Pa ratio is higher, giving her reason to buy more of B and less of A e. should increase her purchases of A and decrease her purchases of B
Which of the following groups have no promise of any payment from the corporate firm?
a. the banks who have loaned the company money b. the common stockholders c. the preferred stockholders d. the managers e. the bondholders
Which of the following is correct concerning stock market irrationality?
a. Bubbles could arise, in part, because the price that people pay for stock depends on what they think someone else will pay for it in the future. b. Economists almost all agree that the evidence for stock market irrationality is convincing and the departures from rational pricing are important. c. Some evidence for the existence of market irrationality is that informed and presumably rational managers of mutual funds generally beat the market. d. All of the above are correct.