Which of the following shifts the demand for loanable funds curve leftward?
A) a fall in the real interest rate
B) a rise in the real interest rate
C) a decrease in the taxes paid by the business
D) a decrease in the expected profit
D
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Suppose inflation is expected to be 5 percent next year, and you and your employer agree to a 6 percent increase in your nominal, or monetary, wage. If inflation turns out to be 5%, what is your nominal wage increase?
Which of the following is an appropriate policy for a central bank to follow if the economy is plagued with deflation?
A) using contractionary monetary policy to drive up interest rates B) gradually raising the required reserve rate C) increasing the target interest rate on overnight loans D) consistently pursuing policy to promote the credibility of the central bank
In the above figure, the monopolistically competitive firm's profit-maximizing output is
A) 1,000 units. B) 300 units. C) 900 units. D) 700 units.
Measured as a share of GDP, the total government expenditures of the United States are
a. larger than any country in the world. b. smaller than any country in the world. c. smaller than the comparable figure for Japan and most Western European countries. d. larger than the comparable figure for Japan and most Western European countries.