In the short run, money affects the economy through _____
Fill in the blank(s) with the appropriate word(s).
changes in interest rates.
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Answer the next question based on the following data. All figures are in billions of dollars.Government purchases$15Consumption90Gross investment20Consumption of fixed capital5Exports8Imports12This nation's GDP is ________.
A. $116 B. $125 C. $150 D. $121
A decrease in the interest rate, other things constant, will: a. shift the demand for loanable funds curve to the right. b. shift the demand for loanable funds curve to the left. c. increase the quantity of loanable funds demanded. d. increase the quantity of loanable funds supplied
e. shift the supply of loanable funds curve to the right.
In 2010, the co-chairmen of President Obama's deficit reduction commission proposed curtailing or eliminating the mortgage interest deduction that millions of homeowner taxpayers receive every year. Economists who favor the proposal would argue that (i) too much of the economy's capital stock is tied up in residential housing. (ii) too little of the economy's capital stock is invested in
corporate capital. (iii) the misallocation of resources results in lower productivity and reduced real wages. a. (i) only b. (ii) only c. (i) and (ii) only d. (i), (ii), and (iii)
On the Internet you find the following offers for opening an online account. Which of them is the best offer if you have $5,000 to save for two years?
a. an interest rate of 5 percent, with the bank charging you a $50 processing fee at the time you open your account b. an interest rate of 4 percent, with the bank giving you a $65 bonus at the time you open your account c. an interest rate of 3.5 percent, with the bank giving you a $100 bonus to open your account d. an interest rate of 4.5 percent, with no processing fee and no bonus