The level of aggregate output demanded rises when the price level falls, because the resulting decrease in the interest rate will lead to
A. higher investment spending and lower consumption spending.
B. higher investment spending and higher consumption spending.
C. lower investment spending and higher consumption spending.
D. lower investment spending and lower consumption spending.
Answer: B
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Which of the following shifts the supply curve for oranges?
A) disastrous weather that destroys about half of this year's orange crop B) a newly discovered increase in the nutritional value of oranges C) an increase in the price of bananas, a substitute in consumption for oranges D) an increase in income for all orange consumers
Under perfect competition, a firm's: a. demand curve and average revnenue curve are identical, but the marginal revenue curve is different. b. demand curve is different, but the average revenue curve and the marginal revenue curve are identical. c. demand curve, average revenue curve and marginal revenue curve are identical
d. none of these is true.
A crawling peg refers to:
a. a large and sudden currency depreciation. b. a fixed exchange rate regime in which the currency is adjusted very frequently to reflect market conditions. c. a managed or dirty float, depending on the business cycle. d. a drag on exchange rate adjustment caused by imperfect markets
The more bowed (skewed) the Lorenz curve
A. the more equal the distribution of income. B. the more unequal the distribution of money income. C. the greater the total income of the society. D. the greater the number of households in the society.