Which of the following is a reason why aggregate supply decreased following the housing bubble collapse?
A. Government tax rates were altered as a response to change in aggregate output.
B. People stopped investing in homes.
C. Businesses could not access credit to carry out their daily operations.
D. Consumption decreased.
Answer: C
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The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?
A) Figure A B) Figure B C) Figure C D) Figure D
To calculate the internal rate of return on a factory that would yield a perpetual future stream of income, one would divide
A) the annual future payment by the cost of the factory. B) the sum of the future payments by the cost of the factory. C) the cost of the factory by the rate of interest. D) the cost of the factory by the annual future payment.
A central bank has the most control over:
a. A nation's preferred asset ratios. b. The monetary base. c. The real exchange rate. d. The velocity of money. e. The M2 money supply.
A consumer will achieve the highest level of utility possible when she consumes
A) at the point at which the highest indifference curve is tangent to the budget constraint. B) at the point at which the indifference curve crosses the budget constraint. C) at a point to the left of the budget constraint. D) just below the point where the indifference curve crosses the budget constraint.