According to the graph shown, if the market is in equilibrium, total surplus is area(s):
A. A.
B. A + B + C.
C. A + B + C + D + E.
D. D + E.
C. A + B + C + D + E.
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Money is a medium of exchange in that
A) money is generally accepted for buying and selling goods and services. B) currency may be exchanged for gold at any national bank. C) other assets may be better or worse in facilitating exchange than money. D) it must maintain most of its value over time.
Explain in detail what effect a reduction in government spending will have on: (1 ) the LM curve; and (2 ) the IS curve
What will be an ideal response?
According to the classical theory, the aggregate supply curve is
A. downward sloping. B. upward sloping. C. horizontal. D. vertical.
Banks' borrowed funds come mostly from:
A. Buying bonds and loans B. Buying stocks and selling Treasury bonds C. Issuing stocks and buying Treasury bonds D. Issuing bonds and accepting deposits