The entry of new firms into a perfectly competitive market shifts the demand curve outward.
Answer the following statement true (T) or false (F)
False
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The interest rate that banks use as a reference point for interest rates on a wide range of loans to businesses and individuals is the ________.
A. discount rate B. prime rate C. term auction rate D. real interest rate
Which of the following changes in the aggregate demand and aggregate supply curves in likely to result in stagflation?
A) The aggregate demand curve shifts to the left when the economy is in the classical range of the aggregate supply curve B) The aggregate demand curve shifts to the right in classical range C) The aggregate demand curve shifts to the right when the economy is in the Keynesian range of the aggregate supply curve D) The aggregate supply curve shifts left E) The aggregate supply curve shifts right
A contractionary fiscal policy is likely to
A) increase government borrowing, thereby shifting the supply curve for bonds to the right. B) reduce government borrowing, thereby shifting the supply curve for bonds to the left. C) increase government borrowing, thereby shifting the demand curve for bonds to the right. D) reduce government borrowing, thereby shifting the demand curve for bonds to the left.
Which of the following is NOT an example of a negative externality?
A. Noise from a neighbor's motorcycle as he prepares to ride to work at 5a.m. B. Fertilizer on a farmer's field that enters a river and promotes algae growth and kills fish downstream C. Secondhand cigarette smoke D. Damage to homes and businesses caused by a forest fire ignited by lightning