An increase in interest rates:
A. decreases aggregate demand, slowing economic activity.
B. decreases aggregate demand, increasing economic activity.
C. increases aggregate demand, slowing economic activity.
D. increases aggregate demand, increasing economic activity
A. decreases aggregate demand, slowing economic activity.
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The production possibilities frontier can be used to show a manufacturer's possible combinations of output of two goods
a. True b. False Indicate whether the statement is true or false
Between 1981 and 1986, as the federal budget deficit increased,
a. consumption spending fell. b. investment spending was crowded out. c. net exports increased. d. net exports were crowded out.
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50If a manager adopted both project A and B simultaneously, the expected value of this joint project would be:
A. 40. B. 10. C. 20. D. 30.
Recall the Application about fire protection and the median-voter rule to answer following question(s).In the Application, the decision of the community regarding the purchase a firetruck to lower the community fire rating ultimately depends on the changes in the premium and tax liability of:
A. the median voter in the community. B. all the voters in the community. C. the city council of the community. D. the richest voter in the community.