The combined effect on the loanable funds market of a new technology that increases the marginal physical product of capital and a shift in consumers' preferences for more present consumption is
a. an increase in the interest rate
b. a decrease in the interest rate
c. unclear because each of the effects has an opposite influence on the interest rate
d. an increase in the quantity of loanable funds demanded and supplied on the market
e. a decrease in the quantity of loanable funds demanded and supplied on the market
A
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In the Keynesian view,
a. both monetary and fiscal policy can affect income. b. monetary policy can be ineffective when money demand is less interest rate elastic. c. fiscal policy is a more reliable way to stimulate output during a recession. d. all of the above
The South's transportation problem was primarily due to
a. a shortage of mules and horses. b. a limited rail network. c. a shortage of inland shipping. d. the lack of a merchant marine.
Total taxes paid divided by total income is called the
a. lump-sum tax liability. b. marginal tax rate. c. average tax rate. d. average consumption tax liability.
Based on the CPI, how do we measure annual inflation?
a. We compute the total price of a fixed set ("market basket") of goods and services in a base year, such as 2003, and in a future year, such as 2004. b. We get CPI for 2004 by multiplying the 2004 total cost with the 2003 total cost, and divide by 100 . A similar calculation will yield the CPI value for 2003. c. We get CPI for 2004 by adding the CPI value for 2003 to the CPI value for 2004, and multiply by 100. d. We compute the total cost of a fixed set ("market basket") of goods and services in a base year, such as 2003, and in a future year, such as 2004.