A national chain of grocery stores wants to finance the construction of several new stores. The firm has limited internal funds, so it likely will
a. demand the required funds by buying bonds.
b. demand the required funds by selling bonds.
c. supply the required funds by buying bonds.
d. supply the required funds by selling bonds.
b
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Refer to Figure 13-17. What is the amount of excess capacity?
A) Qj - Qh units B) Qj - Qf units C) Qh - Qg units D) Qh - Qf units
In the fooling model, AD/SAS equilibria to the left of LAS are unstable because ________ nominal wages shift ________
A) falling, AD downward B) falling, SAS downward C) rising, AD upward D) rising, SAS upward
If the government should decide to legalize marijuana, all other things remaining the same, we should expect to see
A) a decrease in the price of marijuana. B) an increase in the price of marijuana. C) a decrease in the demand for marijuana. D) an increase in the use of imported versus domestic marijuana.
Suppose business decision makers become more optimistic about the future and, as a result, increase their investment spending by $20 billion. If the economy's marginal propensity to consume is 0.75, the equilibrium level of aggregate real GDP will increase by:
A. $15 billion. B. $20 billion. C. $50 billion. D. $80 billion.