The statement that "at 10 percent, the interest rate is too high for families to buy a home they could have afforded when the interest rate was below 7 percent ," is a(n)
a. positive statement
b. normative statement
c. morally ambiguous philosophical position
d. affront to the American dream
e. value judgment
A
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When the Fed increases the quantity of assets it owns, it is said to be engaging in
A) credit easing. B) forward guidance. C) quantitative easing. D) a maturity extension program.
The labels for the axes of an aggregate supply curve should be:
A. aggregate demand for the vertical axis and real national output for the horizontal axis. B. real domestic output for the vertical axis and price level for the horizontal axis. C. real domestic output for the horizontal axis and price level for the vertical axis. D. real employment for the vertical axis and price level for the horizontal axis.
When consumers maximize utility, they are equating the ratio of total utility to price across all goods consumed.
Answer the following statement true (T) or false (F)
Assume an economy is in equilibrium at an output level of $600 billion. If government purchases decrease by $75 billion, then at the output level of $600 billion, there is
A. either an unplanned increase or decrease in inventories depending on the value of the MPC. B. an unplanned increase in inventories. C. an unplanned decrease in inventories. D. an unplanned inventory change of zero.