The combined efforts of the Fed and the Treasury in response to the financial crisis following the housing market crash caused:
A. aggregate supply to shift right to its pre-crisis level.
B. aggregate supply to shift left, but still far below its pre-crisis level.
C. aggregate demand to shift right to its pre-crisis level.
D. the opposite reaction, and aggregate supply shifted farther to the left.
A. aggregate supply to shift right to its pre-crisis level.
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Expenditures on education equal about _____ of state and local government financial outlays
a. one quarter b. one third c. one half d. two thirds
Which of the following is not one of the assumptions of the quantity theory of money?
A. Real output is independent of the money supply. B. Causation goes from money supply to prices. C. Velocity is constant. D. The money growth rate is constant.
If demand is estimated to be Qd = 240 - 6P, the marginal revenue function is
A. MR = 240 - 6P. B. MR = 240 - 2Q. C. MR = 240 - 12P. D. MR = 40 - 2P. E. MR = 40 - 0.33Q.
The demonstration effect suggests that people will save less when they
A. recognize that the real interest rate has increased. B. base their saving decisions on their projections of income and spending needs over their lifetime. C. base their spending decisions (and consequently their saving decisions) on spending decisions of others who spend more than they do. D. control their spending in order to save more when the real interest rate increases.