In the case of a private good, which of the following forms of economic organization will result in the strongest incentive for consumers and producers to economize?
a. The good is produced privately and taxes are used to provide it to consumers free of charge.
b. The good is produced privately and consumers purchase it with their own money.
c. The good is produced by government enterprises and the cost of its production is covered by taxes.
d. The good is produced by government enterprises and consumers purchase it with their own money.
B
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Which of the following would cause a decrease in aggregate demand?
A. a rise in wages B. an increase in the price level C. an increase in the money supply D. a fall in investor confidence
Based on your understanding of the IS-LM model, graphically illustrate and explain what effect a monetary expansion will have on output, the interest rate, and investment
What will be an ideal response?
If the substitution effect of the real interest rate on saving is larger than the income effect of the real interest rate on saving, then a rise in the real interest rate leads to a ________ in consumption and a ________ in saving, for someone who's a lender.
A. fall; rise B. rise; rise C. fall; fall D. rise; fall
The Fed's forward guidance in late 2012 through mid-2015 was framed in terms of keeping interest rates low
A) for an extended period. B) at least until a particular date in the future. C) based on outcomes for the unemployment rate and inflation rate. D) until the next Presidential election.