In 2008, Australia had a government budget surplus of $21.7 billion. This budget surplus shifts the demand for loanable funds curve ________
A) leftward and lowers the real interest rate.
B) leftward and creates a crowding-out effect.
C) rightward and creates a crowding-out effect.
D) rightward and creates a Ricardo-Barro effect.
A
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Buying a diversified mutual stock fund allows you to
A) completely avoid all types of risk. B) avoid only random, unsystematic risk. C) avoid only systematic risk. D) avoid risk only when all the stock prices are perfectly correlated.
At the international level, the division of labor increases output through
a. tariffs. b. economies of scale. c. standardization. d. exchange rates.
The market demand for an item is
a. the sum of individual demands. b. steeper for any given price change than the individual demand curves. c. independent of the number of individuals in the market. d. determined by dividing the quantity demanded by each individual by the number of individuals in the market.
Which of the following is the government most likely to discourage because of the existence of externalities?
A. Foods that taste good. B. Thermal pollution from a power plant that improves fishing downstream. C. Cars that create an excessive amount of exhaust fumes. D. All goods and services produced by monopolies.