Changes in which of the following change the demand for capital and shifts the demand curve for capital?
A) current income
B) expected future income
C) the rental rate
D) the marginal product of capital
D
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The government played a central role in directing the post-World War II economy, causing all of the following to occur except
(a) The reduction of entitlements, such as Social Security and unemployment benefits. (b) Massive spending by the federal government, justified by the Cold War. (c) Enormously expanded government infrastructure spending on things like highways, airports, education and research and development. (d) There is no "except"; all of the above occurred.
If the money supply is $1 billion, the reserve requirement is 10%, and currency holding $50 million, then reserves are
a. $50 million. b. $100 million. c. $20 million. d. $40 million. e. none of the above
When applying the marginal principle, you should pick the level at which the activity's marginal benefit is less than its marginal cost.
Answer the following statement true (T) or false (F)
In the above figure, a movement from point B to point C could be explained by
A. the real-balance effect. B. increased government spending. C. an increase in the price level. D. a decrease in the quantity of money in circulation.