An economy experiences a recessionary ga
A) falls, shifting the aggregate supply curve rightward.
B) rises, shifting the aggregate supply curve leftward.
C) rises, shifting the aggregate demand curve rightward.
D) falls, shifting the aggregate demand curve leftward.
E) falls, increasing potential GDP.
A
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Capital gains are a type of income earned from
A) interest on savings accounts. B) employment in a factory. C) the sale of assets. D) all of the above.
Since interest rates for borrowing are usually higher than interest rates for savings, the intertemporal budget constraint has an inward kink for individuals that earn income now and in the future.
Answer the following statement true (T) or false (F)
The government can continuously issue new bonds to pay the interest on its outstanding bonds so long as
A) the real GDP growth rate exceeds the real interest rate. B) the real interest rate exceeds the real GDP growth rate. C) the real interest rate exceeds the nominal interest rate. D) the nominal interest rate exceeds the cost of borrowing.
The primary functions of money are:
a. velocity, liquidity, and transactions. b. speculative demand, measure of value, and precautionary demand. c. a medium of exchange, a unit of account, and a store of value. d. a store of value, heterogeneity, and a medium of exchange. e. currency value, fiat value, and accepted value.