Policies to promote growth by increasing saving and investment work through
A) increasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital.
B) increasing the supply of loanable funds, lowering the interest rate, lowering the level of investment in physical capital.
C) increasing the supply of loanable funds, increasing the interest rate, raising the level of investment in physical capital.
D) decreasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital.
A
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The price elasticity of demand for a vertical demand curve is:
a. perfectly elastic. b. perfectly inelastic. c. unitary elastic. d. elastic. e. inelastic.
It is not possible to have a "growth recession" because if the economy grows at all then it is not in a recession.
Answer the following statement true (T) or false (F)
A car dealer sells you a car today in exchange for money in the future. This illustrates which function of money?
A) medium of exchange B) unit of account C) store of value D) standard of deferred payment
Jones and Smith are teaching assistants. Jones can grade 20 essays or 50 problem sets a day, while Smith can grade 20 essays or 10 problem sets a day. Therefore
A) Smith sacrifices 2 graded essays for every 2 problem sets she grades. B) Smith sacrifices 10 graded essays for every 20 problem sets she grades. C) Jones sacrifices 2 graded essays for every 5 problem sets he grades. D) Both Smith and Jones have a comparative advantage in grading essays.