The demand curve for investment in the economy as a function of interest rates is:
a. vertical.
b. horizontal.
c. upward sloping.
d. downward sloping.
e. elliptical.
d
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If the government uses its budget surplus to finance additional government purchases or tax cuts, crowding out will
A. not occur. B. occur to a greater degree. C. still occur, but to a lesser degree. D. occur more rapidly.
A minimum wage law is a:
A. price ceiling. B. price floor. C. customary norm without legal structure or protection. D. quantity restriction.
It never occurred to Keynesians that they would have to choose between policies to control unemployment and policies to control inflation
Indicate whether the statement is true or false
Nonactivists hold that
A) activist monetary policies are likely to be destabilizing rather than stabilizing. B) economic fine-tuning is quite feasible. C) flexibility in wages and prices is sufficient to allow the economy to return at a reasonable speed to full-employment output. D) a and c E) all of the above