The use of monetary policy to shift aggregate demand to the right in a severe recession is like:

A. Pushing on a string

B. Putting all eggs in one basket

C. Pulling on one's purse-strings

D. Pushing the envelope


A. Pushing on a string

Economics

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In the market for insurance, the moral hazard problem leads: a. those most likely to collect on insurance to buy it

b. those who buy insurance to take fewer precautions to avoid the insured risk. c. those with less insurance to take on more risk. d. to none of the above.

Economics

Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. Suppose consumers' income is $50,000 and the price of satellite TV service is $90. At what price would the demand for cable TV services be equal to 55,000 households?

A. $67 B. $48 C. $12 D. There is not enough information to answer the question.

Economics

Elasticity of investment measures the responsiveness of

A) interest rates to changes in investment. B) investment to changes in government spending. C) investment to changes in the interest rate. D) investment to changes in consumption.

Economics

If citizens expect to bear more of the burden for their own health care and retirement costs in the future, then we would expect their:

A. supply of loanable funds further right than it would otherwise be. B. supply of loanable funds further left than it would otherwise be. C. demand for loanable funds further left than it would otherwise be. D. demand for loanable funds further right than it would otherwise be.

Economics