Suppose the government deficit increases, but the interest rate remains the same. Which of the following things might have happened simultaneously to keep interest rates the same?
a. The government reduces the amount that people may put into savings accounts on which the interest is tax exempt.
b. Because they are optimistic about the future of the economy, firms desire to borrow more to purchase physical capital.
c. Consumers decide to decrease consumption and work more.
d. All of the above could explain why the interest rate would be unchanged.
c
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A credit union is
A) a combination of credit card corporations. B) a depository institution owned by a social or economic group. C) a thrift institution that issues credit cards. D) a commercial bank owned by its depositors.
What is being depicted in this graph?
a. Real estate prices are low when supply is low.
b. An increase in land supply will increase the price.
c. Demand determines the amount paid for land.
d. It is more expensive to rent than to buy land.
A quota brings a more serious misallocation of resources than a tariff.
Answer the following statement true (T) or false (F)
Refer to the above figure. If the price level is 80
A. the economy will have economic growth and the new equilibrium price level will be 80. B. the total planned real expenditures by individuals, businesses, and the government are less than total planned production by firms. C. the total planned real expenditures by individuals, businesses, and the government exceed total planned production by firms. D. the aggregate demand curve will automatically shift leading to a stable equilibrium.