In the classical model, an increase in government spending shifts the
a. demand for loanable funds to the right.
b. demand for loanable funds to the left.
c. supply of loanable funds to the right.
d. supply of loanable funds to the left.
A
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In modern free enterprise economies, which of the following is not an economic role of government?
A. stabilization of national income, employment, and the price level B. altering the allocation of resources to provide for public demands efficiently C. providing a reasonably certain legal, social, and business environment for stable economic growth D. planning the production and distribution of most economic goods
For country A, an export is a good produced in:
A. country B and purchased by residents of country B. B. country B and purchased by residents of country A. C. country A and purchased by residents of country B. D. country A and purchased by residents of country A.
Refer to the given balance sheets. If the reserve ratio is 25 percent, the maximum money- creating potential of the commercial banking system is:
A. $36.
B. $17.
C. $48.
D. $24.
What is the rationale behind empiricism in economic analysis?
What will be an ideal response?