In the ________ , savers and borrowers come together to determine the market rate of interest
a. stock market
b. market for goods and services
c. market for resources
d. loanable funds market
d
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In a cartel
A) each firm has an incentive to decrease its own production below the level set by the cartel. B) the firms' marginal cost equals the price set by the cartel. C) each firm has an incentive to lower its price below the level set by the cartel. D) each firm has an incentive to raise its price above the level set by the cartel.
What is a normal good?
a. A good whose demand increases when income decreases b. A good whose demand decreases when income decreases c. A good whose demand increases when price increases d. Both B&C
What type of relationship does the real interest rate have with respect to Investment spending?
A. negative relationship B. positive relationship C. No relationship D. constant relationship
The experience of the 1930s indicates that substantial tax increases during a severe recession will result in
A) an increase in tax revenues that will lead to a balanced budget. B) a reduction in output and employment. C) smaller budget deficits, which will speed an economic recovery. D) an increase in the incentive to earn.