In an economy with no government or foreign sector, which of the following always holds true, ex-post?
A) Consumption equals investment.
B) Velocity equals money demand.
C) Saving equals consumption.
D) Saving equals investment.
D
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Which of the following characteristics is a precondition for economic growth? i. economic freedom ii. free markets iii. active government policy to discourage saving
A) i only B) ii only C) iii only D) Both i and ii E) Both ii and iii
Health care is generally considered a normal good. Briefly explain what you would expect to see happen to spending on health care over time, with health care being considered as a normal good
What will be an ideal response?
Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What area represents the deadweight loss after the imposition of the price floor?
A) J + H B) C + E + J + H C) C + E D) G + H
Exhibit 20-4 Aggregate demand and supply model
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In Exhibit 20-4, which one of the following actions could the Fed use to shift the AD curve from AD1 to AD2?
A. raise the legal reserve requirement B. lower the discount rate C. increase the federal funds rate D. sell government securities