What curve shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level?


The aggregate demand curve

Economics

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The phrase "decreasing marginal benefit" means that

A) the more you consume of the product, the less total benefit you derive. B) the marginal cost will be increasing as you consume more of a good. C) each additional unit of a good you consume gives you less additional benefit than the previous unit. D) Both answers A and B are correct. E) Both answers A and C are correct.

Economics

Economists refer to the general problem of ________ as a principal-agent relationshi

A) moral hazard B) adverse selection C) negative externalities D) pecuniary externalities

Economics

If the reserve requirement is 10 percent, which of the following pairs of changes would both allow a bank to lend out an additional $10,000?

a. the Fed buys a $10,000 bond from the bank or someone deposits $10,000 in the bank b. the Fed buys a $10,000 bond from the bank or the Fed lends the bank $10,000 c. the Fed sells a $10,000 bond to the bank or someone deposits $10,000 in the bank d. the Fed sells a $10,000 bond to the bank or the Fed lends the bank $10,000

Economics

If the Fed wanted to stimulate the economy to limit the effects of a recessionary gap, then it should ________ the federal funds rate in order to ________ the real interest rate and thereby ________ investment.

Fill in the blank(s) with the appropriate word(s).

Economics