In 2010, the United States and foreign economies start to recover from the recession. U.S. firms increase their profit expectations. As a result, the demand for loanable funds curve shifts ________ and the real interest rate ________
A) leftward; decreases
B) rightward; decreases
C) leftward; increases
D) rightward; increases
D
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Which of the following expenditures is classified as a discretionary expenditure of the U.S. federal government?
A) federal employee pensions B) student loans and grants C) Social Security D) food stamps
A monopoly firm will maximize profits by producing where
A) marginal revenue is the same in domestic and foreign markets. B) prices are the same in domestic and foreign markets. C) marginal revenue is higher in foreign markets. D) marginal revenue is higher in the domestic market. E) total revenue from domestic and foreign sales is maximized.
Government programs that take money from high-income people and give it to low-income people typically
a. improve economic efficiency because they reducing poverty. b. reduce economic efficiency because they distort incentives. c. have no effect on economic efficiency because they both reduce poverty and distort incentives. d. sometimes improve, sometimes reduce, and sometimes have no effect on economic efficiency.
Stagflation exists when prices
a. rise and unemployment falls. b. rise and unemployment rises. c. fall and unemployment rises. d. fall and unemployment falls.