If the Fed increases the money supply, the interest rate
a. rises and spending increases
b. rises and spending decreases
c. falls and spending increases
d. falls and spending decreases
e. falls, business spending increases, and consumer spending decreases
C
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A rancher raises shee
A) only the raw wool and the yarn. B) only the yarn and the sweaters. C) the raw wool, the yarn and the sweaters. D) only the sweaters.
Barriers to entry include network externalities and patents.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 24.1 below to answer the question(s) that follow.
Figure 24.1Refer to Figure 24.1. In this economy, 0.5 represents the
A. MPS. B. MPC. C. multiplier. D. both A and B
The Keynesian approach assumes that
A) the economy is self-regulating. B) there is no unemployment in the economy. C) the price level is fixed. D) the government budget is always in deficit.