The equilibrium effects of a temporary increase in government spending include
A) an increase in the real wage and an increase in the real interest rate.
B) an increase in the real wage and a decrease in the real interest rate.
C) a decrease in the real wage and an increase in the real interest rate.
D) a decrease in the real wage and a decrease in the real interest rate.
C
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Market supply for a private good is found by
a. vertically summing all market prices for a given quantity b. horizontally summing the quantity decisions of producers at each and every price c. adding the price-quantity pairs for all units sold d. none of the above
A bank has deposits of $100,000, reserves of $20,000, and loans of $80,000. If the desired reserve ratio is 10 percent, then its excess reserves are
A) 0. B) $8,000. C) $10,000. D) $2,000. E) $12,000.
Refer to Figure 5-2. On the above graph, identify the market equilibrium price and quantity, the efficient equilibrium price and quantity, and the value of the deadweight loss resulting from too few people receiving vaccinations
What will be an ideal response?
If demand is inelastic, the absolute value of the price elasticity of demand is
A) less than one. B) greater than one. C) one. D) greater than the absolute value of the slope of the demand curve.