In the recent Global Economic Crisis, all of the following are causes that pushed the IS curve to the left EXCEPT
A) the negative wealth effect from the collapse of the housing bubble.
B) the end of cash-out mortgage refinancing.
C) growing unwillingness of banks and nonbank financial institutions to grant loan.
D) slow and minimal response of the U.S. government.
D
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Necessities tend to have more inelastic demands than luxuries
Indicate whether the statement is true or false
A stock variable
a. measures a process that takes place over a period of time b. is used often used to measure the quantity demanded of a good at various prices c. is related to inventory controls d. measures a quantity in existence at a moment in time e. is a definition unique to economics
Franklin Roosevelt implemented the New Deal in the 1930s, and Congress passed the Full Employment Act of 1946 . Both were examples of the government adopting the ideas of
a. classical economics b. rational expectations economics c. supply-side economics d. neo-Keynesian economics e. Keynesian economics
How can a proprietorship or partnership raise funds for expansion?
A) take on a partner or more partners B) reinvest profit back into the business C) borrow from someone or an institution willing to lend the funds D) Any of these would generate funds for expansion.