According to this Application, the Fed increased its lending by hundreds of billions of dollars to financial institutions as a response to the ongoing financial crisis
This increase in loans to financial institutions increased the supply of money in the economy. When the supply of money increases, the money supply curve will
A) shift to the right, increasing the interest rate. B) shift to the left, increasing the interest rate.
C) shift to the right, decreasing the interest rate. D) shift to the left, decreasing the interest rate.
C
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In the Keynesian cross diagram, an increase in autonomous consumer expenditure causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to ________,
everything else held constant. A) up; rise B) up; fall C) down; rise D) down; fall
U.S. antitrust policy is focused primarily on market conduct
a. True b. False
Two students are walking by a department store window that has on display a $400 dress. The English major declares, "I want that dress but can't afford it." The economics major replies, "No, you don't." Explain the logic of this reply
Crowding out occurs when
a. investment declines because a budget deficit makes interest rates rise. b. investment declines because a budget deficit makes interest rates fall. c. investment increases because a budget surplus makes interest rates rise. d. investment increases because a budget surplus makes interest rates fall.