A decrease in government spending will cause a(n):
A. increase in the quantity of real domestic output demanded.
B. decrease in the quantity of real domestic output demanded.
C. increase in aggregate demand.
D. decrease in aggregate demand.
Answer: D
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Which event is most likely to increase the elasticity of demand for a good?
A) A decrease in the demand for the good B) A decrease in the price of the good C) An increase in the demand for the good D) Higher incomes for consumers of the good E) The appearance on the market of excellent substitutes for the good
Nicole is indifferent between option A, which gives her $20,000 for sure, and option B, which gives her $10,000 with probability 0.5 or $32,000 with probability 0.5. Nicole's cost of risk for option B is
A) zero. B) $1,000. C) $2,000. D) $20,000.
Compared to commercial banks and thrift institutions, finance companies are
A) heavily regulated. B) able to attract small depositors. C) prevented from making relatively small loans. D) virtually unregulated.
In what ways does a certificate of deposit (CD) differ from a savings deposit?
What will be an ideal response?