Which of the following would NOT cause a shift in the IS curve?
A) an increase in the domestic real interest rate
B) an increase in consumer confidence
C) a decrease in the expected future profitability of capital
D) a decrease in government purchases
A
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Cost-benefit analysis does not employ interpersonal utility calculations
a. True b. False
The reserve ratio is 20 percent. If the Fed buys $1 million of U.S. government securities from a bond dealer by transmitting the funds to the dealer?s deposit account at Bank ABC, then
A) Bank ABC can make no additional loans. B) Bank ABC can make additional loans up to $800,000. C) Bank ABC can make additional loans up to $1 million. D) Bank ABC cannot make any additional loans, but the system as a whole can make additional loans up to $1 million.
If the real interest rate is above zero, we know that the nominal interest rate must be:
A. lower than the inflation rate. B. higher than the inflation rate. C. equal to the inflation rate. D. zero.
If there is a natural disaster, the long-run aggregate-supply curve shifts
a) upward. b) left. c) right. d) not at all but instead remains constant.