Assume the central bank decides to lower the bank's reserve requirements. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with supply of real credit shifting to the right.
b. Start the analysis in the real goods market with aggregate demand shifting to the left.
c. Start the analysis in the real credit market with demand for real credit shifting to the left.
d. Start the analysis in the real credit market with demand for real credit shifting to the right.
e. Start the analysis in the real credit market with supply of real credit shifting to the left.
.A
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A good purchase for an investor seeking a high degree of liquidity with minimal market risk would be a U.S
A) Treasury bill. B) Treasury bond. C) Treasury note. D) savings bond.
There is news that the price of Tucker's Root Beer will increase significantly next week. If the demand for Tucker's Root Beer reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in:
a. tastes. b. income levels. c. the price of other goods. d. the number of buyers. e. expectations.
Marginal revenue
A. measures the slope of the total revenue curve. B. is always greater than zero. C. is the change in total revenue when output increases by one unit. D. both a and c E. all of the above
Figure 34-3
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In Figure 34-3, the solid lines represent the respective production possibilities curves for the United States and Mexico. Which graphs show the correct consumption possibilities curves (dashed lines) after an agreement is reached to trade 1 unit of wheat for 1 unit of petroleum?
A. (1) and (4) B. (1) and (2) C. (2) and (3) D. (3) and (4)