The main policy-making body of the Federal Reserve System is the Federal Open Market committee
Indicate whether the statement is true or false
TRUE
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The question of scarce resources and unlimited wants is addressed in
a. psychology b. history c. political science d. economics e. anthropology
The economic justification for public subsidies to university research is based on
a. the value of this research to the university. b. the higher salaries graduate students earn as a result of working with professors involved in research. c. the external benefits of research and development to, in particular, high rates of economic growth. d. higher incomes earned by those who provide services to university researchers (equipment, supplies, etc.).
Figure 10-18
Beginning from long-run equilibrium at point E1 in , the aggregate demand curve shifts to AD2. The real GDP and price level (CPI) in short-run equilibrium will be
a.
$10 billion and 200.
b.
$10 billion and 150.
c.
$10 billion and 100.
d.
$4 billion and 150.
Based on the graph showing the market for loanable funds, what will happen at a real interest rate that is higher than equilibrium?
a. Lenders will compete for borrowers and interest rates will fall.
b. Lenders will compete for borrowers and interest rates will rise.
c. Borrowers will compete for loans and interest rates will fall.
d. Borrowers will compete for loans and interest rates will rise.