Which of the following is true of a demand curve?
a. It must remain stable over time
b. It can shift either rightward or leftward.
c. It is possible to move along the curve, but the demand curve will not shift.
d. None of the above are true.
b
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Which of these is a disadvantage of issuing stock relative to bonds?
If the required reserve ratio was 1, the demand deposit expansion multiplier would be
A) 0. B) 1. C) 1.2. D) 5.
What is one reason existing firms might lobby the government to increase regulation in their industry?
A) It increases entry and exit costs, thereby reducing producer surplus to existing firms. B) It increases entry and exit costs, thereby potentially increasing producer surplus to existing firms. C) It increases entry and exit costs, but has no impact on producer surplus. D) Firms cannot be trusted to treat their customers fairly and ethically.