If households experienced greater uncertainty about their economic future, which of the following would occur in the market for loanable funds?
a. Both the supply and demand for funds would increase, lowering the interest rate and raising investment spending.
b. The supply of funds would decrease, raising the interest rate and lowering investment spending.
c. The supply of funds would decrease, lowering both the interest rate and investment spending.
d. The supply of funds would increase, lowering both the interest rate and investment spending.
e. The supply of funds would increase, lowering the interest rate and raising investment spending.
E
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Data on output and aggregate expenditure in Macroland are given below.Output(Y)Aggregate Expenditure2,0002,3003,0003,2004,0004,1005,0005,0006,0005,900Based on these data, the short-run equilibrium level of output is:
A. 3,200. B. 2,000. C. 5,000. D. 4,100.
What are the differences between national income, personal income, and disposable personal income?
What will be an ideal response?
The ratio of a country's exports to its total output (GNP or GDP)
A) is known as the index of openness. B) provides a rough measure of the importance of international trade to that economy. C) if calculated for the United States would be quite low. D) All of the above.
The above figure supports all of the following statements regarding health care EXCEPT
A. the lower the deductible, the greater is the quantity demanded of health care services per year. B. if all medical expenses were paid for by third parties, the quantity demanded would increase tremendously. C. due to third party payments, patients demand a higher quantity of health care services per year. D. the demand for health care is insensitive to price changes; as the price goes up, so does the quantity demanded.