Which of the following statements about Keynes' contribution to macroeconomics is correct?
A) Although he published his most important ideas about the economy long before the 1930s, few economists paid attention to Keynes until the Great Depression proved him correct.
B) Keynes argued that depressions and recessions were almost always caused by changes in the money supply.
C) Keynes argued that balancing the budget could be an effective way to cure a recession or depression.
D) all of the above
E) none of the above
E
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An "increase in demand" means that
A) the demand curve has shifted to the left. B) price has declined and consumers want to purchase more of the good. C) the demand curve has shifted to the right. D) the price of the good can be expected to decline, assuming supply stays constant.
In the open-economy macroeconomic model, if a country's interest rate falls, then its
a. net capital outflow and its net exports rise. b. net capital outflow rises and its net exports fall. c. net capital outflow falls and its net exports rise. d. net capital outflow and its net exports fall.
Which of the following is NOT normative economic statement?
A) The minimum wage should be eliminated so unemployment can be reduced. B) Increases in the minimum wage cause increases in unemployment. C) The inflation rate should fall to increase individuals' well being. D) Taxes on cigarettes should be increased to reduce smoking.
Each of the following is an example of a restrictive covenant on a mortgage loan, except:
A. requiring that the borrower reside in a home for which he or she receives a mortgage. B. requiring the borrower to obtain comprehensive health insurance. C. net worth requirements. D. insisting the borrower carry physical damage insurance on the property securing the loan.