A main argument for investing in US securities is the:
A. high rate of interest.
B. low rate of interest
C. low risk of owning them.
D. varied time frame of payment for different types of securities.
C. low risk of owning them.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. B; C C. B; A D. D; B
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Aggregate planned expenditure decreases if
A) exports increase. B) government expenditure on goods and services increases. C) autonomous consumption increases. D) real GDP decreases. E) investment increases.
Upon your graduation from college, you find that the economy is in recession and the unemployment rate is relatively high. Nonetheless, you continue along your career path looking for a new job because
A) the wages of college graduates do not fall during recession. B) high unemployment rates do not usually last for very long. C) the cost of additional education is always higher during recession. D) looking for work is your only option.