Wealth decreases as a result of ________ and/or ________.
A. positive saving; capital gains
B. negative saving (borrowing); capital gains
C. negative saving (borrowing); capital losses
D. negative saving (borrowing); crowding out
Answer: C
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
In the above figure, the x-coordinate of point b is
A) 1. B) 2. C) 3. D) 14.
Why didn't the Fed's quantitative easing policies exert a stronger impact on aggregate demand and lead to a more rapid recovery during 2010-2012?
a. The low interest rates accompanying the policy failed to increase stock prices. b. Even though the Fed made additional reserves available to the banking system, the policy did not result in lower interest rates. c. The velocity of money increased, partially offsetting the impact of the Fed's low interest rate policy. d. The earnings of senior citizens and others from money market accounts, saving deposits, and other forms of savings fell, reducing their incentive to spend and thereby increasing aggregate demand.
Hammacher Schlemmer Hammacher Schlemmer is a chain of retail stores famous for introducing a steady flow of innovative new products to customers. When it negotiates for a new product, it often requires that it will get the exclusive rights to retail it for a year or two. Why is it advantageous to the supply chain for there to be an exclusive dealer and why for only a few years?