Which of the following will shift the demand curve for capital leftward?

a. Introduction of supercomputers in the resource market
b. A fall in the market interest rates
c. An increase in the price of capital
d. Business expectations of increased regulations
e. A rise in the equilibrium wage of labor


d

Economics

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A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A

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If the spending multiplier equals 6 and equilibrium real GDP is $32 billion below potential real GDP, then total planned expenditures need to decrease by approximately $5.33 billion to close the recessionary gap

a. True b. False Indicate whether the statement is true or false

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A formula for determining how much a bank can extend loans through the creation of check able deposits is

a. excess reserves/the reserve requirement. b. excess reserves ? the reserve requirement. c. excess reserves + the reserve requirement. d. reserve requirement/excess reserves.

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Which of the following are included in GDP?

a. Traffic congestion b. Crime c. Pollution d. Underground economic activity e. None of the above

Economics