Businesses will want to borrow more funds as the real rate of interest decreases
a. True
b. False
Indicate whether the statement is true or false
True
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What would happen if three more restaurants opened in a small town where only four restaurants were open for business originally?
A. People would pay higher prices to eat out. B. The town would raise significantly more taxes. C. The restaurants would become more like a competitive market. D. The restaurants would form a cartel in the town.
A decline in the money stock will
a. shift the LM schedule to the right. b. shift the LM schedule to the left. c. not have any effect on the LM schedule. d. shift the IS schedule downward and to the right.
If the price of oil, a close substitute for coal, increases then the
a. supply curve for coal will shift to the right. b. demand curve for coal will shift to the right. c. equilibrium price and quantity of coal will not change. d. demand curve for coal will shift to the left. e. supply curve of coal will shift to the left.
Which statement is true?
A. Aid to other countries is the fourth largest spending item in the federal budget. B. Nearly half of federal government spending goes for direct payments to individuals. C. Over half of all federal tax receipts comes from the personal income tax. D. Defense spending per capita is less than most other industrial countries.