Refer to Figure 9.1. Assume the economy is initially at point A. The eventual change from a shock that increases investment expenditure is best represented by which long-run equilibrium combination of price level and real GDP?
A) P2; Y2
B) P3; Y1
C) P1; Y2
D) P2; Y1
D
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It has been argued that banks tended not to take full advantage of issuing notes, thereby passing up potential profits because:
a. the profit amounts were small. b. they were not the types of profits conservative bankers wanted to pursue. c. regulations and opportunity costs involved with the issuance itself limited the profits. d. All of the above are correct. e. Only a and c are correct.
An expansionary monetary policy is most likely to:
A. decreases interest rates, reduces investment, and decreases income. B. decreases interest rates, raises investment, and increases income. C. increases interest rates, raises investment, and increases income. D. increases interest rates, reduces investment, and decreases income.
___ model is where information and knowledge acquired or learned about the various brands are the basis for developing affect, or feelings, that guide what the consumer will do.
Fill in the blank(s) with the appropriate word(s).
Describe the saving schedule.
What will be an ideal response?