The demand for loanable funds comes from:
A. savings.
B. households spending on nondurable goods.
C. the government printing money.
D. investment.
Answer: D
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How is inflation typically measured? What are the different types of inflation? Why is it important to know which type of inflation we may be experiencing?
If the central bank in a foreign country increases its interest rate, then the IS curve of the domestic economy will:
A) shift to the right. B) shift to the left. C) not shift at all. D) shift to the right because U.S. exports will decrease.
Indirect incentive
What will be an ideal response?
Output in the long run is determined by which of the two following factors when an economy operates at full employment?
A) capital and supply B) capital and labor C) the "real" GDP and purchases D) imports and exports