The U.S. trade deficits of the late 1990s were due primarily to low saving rates
a. True
b. False
Indicate whether the statement is true or false
True
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The ease with which an asset can be converted into the medium of exchange is called
a. liquidity. b. velocity. c. the equation of exchange. d. the money multiplier.
In a certain economy, the components of planned spending are given by: C = 500 + 0.8 (Y - T) - 300rI P = 200 - 400rG = 200NX = 10T = 150 Given the information about the economy above, what would be the impact on short-run equilibrium output of a one-percentage-point increase in the real interest rate, assuming the income-expenditure multiplier equals 5?
A. Short-run equilibrium output would decrease by 35 units. B. Short-run equilibrium output would decrease by 700 units. C. Short-run equilibrium output would decrease by 7 units. D. Short-run equilibrium output would increase by 35 units.
Which of the following characteristics is NOT likely to increase the interest on a loan?
A) a high-risk proposal B) a non-creditworthy borrower C) a short-term loan D) a larger dollar loan
To have competition as economists define it,
A. you need many firms in an industry, with no one firm having any influence over price. B. you need a couple of firms in the industry, with each having significant influence over the price. C. you need many firms in an industry, and it doesn't matter if one firm has influence over price. D. All of these statements are true.