Refer to the information provided in Figure 1.3 below to answer the question(s) that follow.
Figure 1.3Refer to Figure 1.3. If a 45-degree line were also graphed, the existing line shown on the graph would ________ it.
A. lie below
B. lie above
C. cross
D. The answer is indeterminate from this information.
Answer: B
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Indirect finance includes the sale by a corporation of stocks or bonds, as well as borrowing money from a bank
Indicate whether the statement is true or false
An increase in the money supply will cause
A) the IS curve to shift down and to the right. B) the IS curve to shift up and to the left. C) the LM curve to shift down and to the right. D) the LM curve to shift up and to the left.
Indifference curves are convex to the origin because of:
A) transitivity of consumer preferences. B) the assumption of a diminishing marginal rate of substitution. C) the assumption that more is preferred to less. D) the assumption of completeness. E) none of the above
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.