If the intersection of the IS curve with the horizontal axis comes at a level of output below the natural level of output, lowering interest rate to zero will
A) bring economy back to natural output.
B) not bring the economy back to natural output.
C) will have inflationary effects on the economy.
D) will cause saving rates to increase.
D
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Which of the following will increase the real interest rate?
A) an increase in household saving B) an increase in the demand for loanable funds C) an increase in the budget surplus D) an increase in the supply of loanable funds
Which of the following is a measure of the cost of goods and services bought by firms?
a. consumer price index b. employment cost index c. GDP deflator d. producer price index
Preferred Budgets ($ in millions)45678910Number of voters (in thousands)516253022193Table 15.3Table 15.3 shows the preferred budget for a new performance center and the number of voters in a community who prefer that budget. What budget does the median voter prefer?
A. 6 B. 7 C. 8 D. 9
Entry to and exit from a(n) ________ market are ________.
A. oligopolistic; easy B. contestable; difficult C. contestable; easy D. perfectly competitive; difficult