An asset category that caries the highest interest rate is
A) checkable deposit accounts.
B) loans.
C) cash in the bank vault.
D) savings deposits.
B
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In the four-part diagram used to construct the IS curve, the upper right-hand graph depicts
A) the IS curve. B) the relationship between the interest rate and autonomous planned spending. C) determination of real income by the saving function and the demand for autonomous planned spending function. D) none of the above.
Which of the following statements most likely describes what occurred in this economy?
a. Stagflation resulted from the decrease in price levels coupled with lower output.
b. An inflationary gap resulted due to the shift from RGDPNR to RGDP2.
c. Output decreased and unemployment increased.
d. An increase in consumer confidence shifted AD1 to AD2.
A family that earns $20,000 a year pays $200 a year in clothing taxes. A family that earns $40,000 a year pays $800 a year in clothing taxes. The clothing tax is a ________ tax.
A. progressive B. regressive C. proportional D. benefits-received
If total utility is increasing, then marginal utility:
A. Must be declining B. Must be increasing C. Must be increasing at an increasing rate D. May either be increasing or decreasing, but it must be greater than zero