If Y>C+I+G but Md= Ms, then
a. interest rates must rise and output must fall.
b. both interest rates and output must fall.
c. interest rates must fall and output must rise.
d. both interest rates and output must rise.
e. none of the above.
B
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What happens in public schools when government funds subsidize education?
A) There is a shortage of schools. B) The quality of education rises. C) The cost of providing the education is less than what the student pays. D) The cost of providing the education is more than what the students pays.
Under fixed exchange rates, a central bank
a. adjusts the money supply automatically and immediately to changes in the demand and supply of foreign exchange b. need hold no reserves of foreign exchange c. enforces the fixed exchange rate by refusing to buy or sell foreign exchange whenever changes occur in demand or supply d. may find its reserves fluctuating as demand and supply conditions change e. has no authority to buy or sell foreign exchange
Providing a fixed number of workers with additional capital will ________ average labor productivity at a(n) ________ rate.
A. increase; decreasing B. decrease; decreasing C. increase; constant D. increase; increasing
There has recently been an increase in the price of dairy products used in the production of ice cream. High temperatures have also induced people to consume more ice cream. In the market for ice cream, the effects these changes will have on equilibrium
price and quantity are A) price will increase, and quantity will decrease. B) price will increase, and the effect on quantity is indeterminate. C) price will decrease, and quantity will increase. D) price will decrease, and the effect on quantity is indeterminate.