In the figure above, the leftward shift from the demand for loanable funds curve DLF1 to the demand for loanable funds curve DLF3, could be the result of
A) the economy entering an expansion.
B) the economy entering a recession.
C) an increase in interest rates during an economic expansion.
D) a decrease in interest rates during an economic recession.
E) a government budget surplus.
B
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Small-denomination time deposits are
A) considered part of near money. B) included in the definition of both M1 and M2. C) the same as transaction deposits. D) included in the definition of M1, but not in M2.
When two countries choose to use a new currency, they are
A) participating in a monetary union. B) dollarizing. C) forming an optimal currency area. D) increasing their monetary autonomy.
Legislation that provides a subsidies for tobacco growers is an example of
a. public-interest legislation b. competing-interest legislation c. a positive-sum game d. special-interest legislation e. concentrated-costs legislation
Which of the following is a problem associated with gross domestic product (GDP) as a measure of social welfare? a. It includes many nonmarket activities
b. It takes into account the value of only those goods which are widely used. c. It takes into account the cost of environmental damage caused by pollution. d. It includes intermediate goods as a separate entry. e. It excludes the value of leisure time.