In the market for loanable funds, the law of supply:
A. reflects that more people will choose to borrow the lower is the interest rate.
B. reflects that more people will choose to save the lower is the interest rate.
C. reflects that more people will choose to save the higher is the interest rate.
D. reflects that more people will choose to borrow the higher is the interest rate.
C. reflects that more people will choose to save the higher is the interest rate.
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Which of the following would not be included in the calculation of accounting profit?
A. The rent paid by the owner for the use of a building. B. The salary the owner could have earned working elsewhere. C. The medical insurance coverage for the company's workers. D. The wages paid to the company's workers.
The key idea of the aggregate expenditure model is that in any particular year, the level of ________ is determined mainly by the level of aggregate expenditure
A) GDP B) frictional unemployment C) export spending D) government spending
The government's running of a deficit or a surplus with the objective of affecting the level of output in the economy is called:
A. sound finance. B. the Ricardian equivalence. C. fiscal policy. D. public finance.
The United States' basic economic problem would be solved if
A. everyone were given $500,000. B. the population stopped growing. C. all sickness and disease were wiped out. D. our wants could be satisfied with available resources.