If the dotted horizontal line represents the effect of a usury law then there is a ____ of loanable funds of _____ billion dollars.
A. surplus; 275
B. shortage; 275
C. surplus; 400
D. shortage; 400
B. shortage; 275
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When Japan's MITI (Ministry of International Trade and Industry) focused resources on the semiconductor industry, and in particular on Random Access Memory (RAM), it was viewed as a typically successful Japanese foray into a new dynamic strategic
sector. The results, as viewed by the late 1990s A) justified this view. B) led to similar structuring of industrial policy in the U.S. C) lent support to the Brander-Spencer model. D) helped shift the focus of economists away from Japanese-style industrial policy. E) propelled Japan into the leading country in high-tech manufacturing.
If the Fed were to announce that fighting inflation is not a high priority for the immediate future ________
A) households might expect higher inflation B) the short run aggregate supply would shift upwards C) firms might begin raising their prices to keep up with expected inflation D) all of the above E) none of the above
In order to maintain stable prices, a central bank must
a. maintain low interest rates. b. keep unemployment low. c. tightly control the money supply. d. sell indexed bonds.
Refer to the figure above. The economy is at equilibrium at point B. What would expansionary fiscal policy do?
a. Move the economy from point B upward along AD2 b. Move the economy from point B towards point C c. Move the economy from point B downward along AD2 d. Move the economy from point B towards point A