In an economy without government or a foreign sector the equilibrium level of output occurs when
A) actual saving equals actual investment.
B) actual saving equals desired investment.
C) desired saving equals desired investment.
D) desired saving equals actual investment.
A
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Which of the following is true?
A) The real interest rate can never be zero. B) The nominal interest rate is usually negative. C) The real interest rate is always positive. D) The nominal interest rate is usually less than the real interest rate. E) The real interest rate can be negative.
The college textbooks market is an example of
A) perfect competition. B) oligopoly. C) monopoly. D) monopolistic competition.
Which of the following will occur if the Fed raises the reserve requirement, ceteris paribus?
A. The aggregate supply curve should shift leftward. B. The aggregate supply curve should shift rightward. C. The aggregate demand curve should shift leftward. D. The aggregate demand curve should shift rightward.
If an increase in price leads to a decrease in total revenue,
A. demand is elastic. B. demand is inelastic. C. demand is unit elastic. D. there is not enough information to determine the elasticity of demand.