In the LM curve, the __________ the interest-sensitivity of liquidity preference, the __________ the necessary increase in the rate of interest to restore equilibrium
A) greater; smaller
B) greater; greater
C) smaller; smaller
D) None of the above.
A
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The basic difference between macroeconomics and microeconomics is that:
a. microeconomics looks at the forest (aggregate markets) while macroeconomics looks at the trees (individual markets). b. macroeconomics is concerned with groups of individuals while microeconomics is concerned with single countries. c. microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets). d. macroeconomics is concerned with generalization while microeconomics is concerned with specialization.
A major reason that a public debt cannot bankrupt the federal government is because:
A. the public debt is mostly held by foreigners. B. the federal government can draw on its gold reserves. C. the public debt can be easily refinanced. D. the federal government has the Social Security trust fund.
Tim shifted to a new house closer to his office with his family after receiving a favorable salary review from his employer. Here, the new house can be considered as a normal good
Indicate whether the statement is true or false
Nominal GDP increases when either or both prices and output increase
Indicate whether the statement is true or false