Other things the same, an increase in the budget deficit
a. shifts the demand for loanable funds right, so the interest rate rises.
b. shifts the demand for loanable funds left, so the interest rate falls.
c. shifts the supply of loanable funds right, so the interest rate falls.
d. shifts the supply of loanable funds left, so the interest rate rises.
d
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What is meant by comparative statics? Explain with an example
What will be an ideal response?
The invocation of beggar-thy-neighbor arguments with respect to industrial policies
A) strengthens the argument for subsidies. B) makes sense if the international Keynesian multipliers exceed unity. C) applies only to rich countries most of whose trade partners are very poor countries. D) weakens the argument for subsidies. E) does not apply to rich countries who can influence relative world prices.
Negative externalities result in unfair, excessively high prices
a. True b. False Indicate whether the statement is true or false
The over hunting of U.S. buffalo that nearly caused their extinction would be an example of the tragedy of the commons
a. True b. False Indicate whether the statement is true or false