In the above figure, the initial supply of loanable funds curve is SLF0 and the demand for loanable funds investment curve is DLF0. An increase in the real interest rate to 7 percent could be caused by
A) an increase in investment demand.
B) a decrease in the expected profit.
C) an increase in people's disposable incomes.
D) an expansion that increased both saving and investment by the same amount.
A
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Without targeting the deficit, the following is likely to occur after a ________ shock: Y? ? T? ? deficit?.
A. positive aggregate demand B. negative aggregate demand C. positive aggregate supply D. negative aggregate supply
The age-earnings cycle is an earnings profile of an individual throughout the person's lifetime. The profile shows that
A) earnings usually peak at age 25 and then decline. B) earnings gradually rise until they peak around age 50. C) earnings and age have no particular correlation. D) younger workers have the most productivity.
The idea that it takes 90 percent of your time to clean up the last 10 percent of your house illustrates that
A) the marginal cost of cleaning up slopes downward. B) the marginal cost of cleaning up slopes upward. C) the marginal benefit of cleaning up is constant. D) the marginal benefit of cleaning up slopes upward.
What is the effect of an increase in unemployment benefits on the unemployment rate?
What will be an ideal response?