A government surplus has the effect of :
a. Increasing the demand for real loanable funds, increasing the real risk-free interest rate, and increasing the quantity supplied of real loanable funds per period.
b. Increasing the supply of real loanable funds, reducing the real risk-free interest rate, and increasing the demand for real loanable funds.
c. Decreasing the supply of real loanable funds, increasing the real risk-free interest rate, and decreasing the quantity demanded of real loanable funds per period.
d. Decreasing the supply of real loanable funds, increasing the real risk-free interest rate, and decreasing the demand for real loanable funds per period.
e. Increasing the supply of real loanable funds, reducing the real risk-free interest rate, and increasing the quantity demanded of real loanable funds per period.
.E
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Which government reform or program did not occur in the 1930s?
A. the creation of the Federal Deposit Insurance Corporation (FDIC) B. the GI bill of rights C. the creation of the Securities Exchange Commission D. the Social Security System
Relative to the case in which two identical firms choose quantities simultaneously in a Cournot model, if one of the two moves first and is observed by the other, how would this affect its output?
a. it would increase its output, more so if it could deter the other from entering the market at all. b. it would increase its output, but would moderate this increase if it were concerned about entry deterrence. c. it would decrease its output if it couldn't deter entry and increase it otherwise. d. it would decrease its output whether or not it wanted to deter entry.
Elasticity measures how responsive quantity is to changes in price
a. True b. False Indicate whether the statement is true or false
Farm policy in the U.S. has been heavily criticized for the following, except:
A. Being fraught with policy contradictions B. Directing most subsidies to the wealthier farmers C. Benefiting foreign farmers, rather than domestic farmers D. Delaying the shift of resources away from agriculture