Which of the following is not a reason why aggregate demand decreased following the housing bubble collapse?
A. Business investment decreased.
B. Consumption decreased.
C. People stopped investing in homes.
D. Costs of production increased throughout the economy.
Answer: D
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Based on the information in the table, we can conclude that, in 1932, each of the following events occurred except: Currency held by public(in billions)Reserve-deposit ratioBank reserves (in billions)Money supply (in billions)December 1931$4.590.095$3.11$37.3December 1932$4.820.109$3.18$34.0
A. Banks were keeping more of their deposits in reserves, and making fewer loans. B. The Federal Reserve injected reserves into the banking system. C. The Federal Reserve conducted open-market sales of U.S. government bonds. D. The public increased the amount of currency it held.
Refer to the above table. If an economy's current per capita real GDP is $3,000, and if its economy grows at an constant annual rate of 5 percent for 50 years, what will be its per capita real GDP at the end of that period?
A) $21,330 B) $34,500 C) $55,200 D) $13,140
Your U.S.-based company is selling parts to a company in Bangladesh. If the Bangladeshi company purchases a futures contract
A) the Bangladeshi company bears the exchange rate risk. B) your company bears the exchange rate risk. C) the companies share in the exchange rate risk. D) there is no exchange rate risk.
An economic analysis of "planned obsolescence" shows that
a. monopolies have an incentive to produce shorter-lived products, even when longer-lived products can be produced at the same cost. b. firms prefer to produce shorter-lived products, because these result in greater sales and hence larger profits. c. competitive firms are forced to produce the product with greatest longevity, but monopolies can successfully use planned obsolescence. d. firms will make a longer-lived product if the additional cost is less than the present value of the benefits received by consumers.