The term "crowding out" relates to the decrease in
A) consumption expenditure from an increase in investment.
B) the real interest rate from a government budget deficit.
C) private investment from a government budget deficit.
D) saving from an increase in disposable income.
C
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Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 40%, and the excess reserve ratio = 0, a decrease in the required reserve ratio to 5% causes the M1 money multiplier to ________, everything else held constant
A) increase from 2.8 to 3.11 B) decrease from 3.11 to 2.8 C) increase from 2 to 2.22 D) decrease from 2.22 to 2
Which of the following abilities should an economic model possess?
a. It should lower the time cost of information collection. b. It should help individuals to discern the information that matters for a problem. c. It should be able to process both untrue or impossible to verify information as well as correct information in the data set. d. It should suggest accurate solutions for a problem.
One method firms can use to solve the duopolists' dilemma is to engage in:
A. predatory pricing. B. tying contracting. C. marginal cost pricing. D. low-price guarantees.
The marginal revenue product of labor curve will always shift to the left if
A. product demand increases and product price increases. B. the price of capital falls. C. the wage rate falls. D. product demand decreases and product price decreases.