Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Figure 26.5Refer to Figure 26.5. As a result of ________, the equilibrium interest rate increases and the equilibrium output level increases.
A. a decrease in the price level
B. a decrease in government spending
C. an increase in the price level
D. an increase in government spending
Answer: D
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Insurance companies try to avoid adverse selection and moral hazard problems through all of the following methods except one. Which is the exception?
a. offering group policies b. requiring lengthy application forms c. requiring physical examinations d. setting uniform premiums (i.e., prices of insurance policies) for all policies e. requiring policyholders to pay a deductible
When did intellectual property rights become part of trade agreements?
What will be an ideal response?
Using the market for loanable funds, which of the following has the potential to raise the real interest rate?
A) an increase in the demand for loanable funds B) an increase in the quantity of loanable funds demanded C) an increase in the supply of loanable funds D) an increase in the quantity of loanable funds supplied
Predatory pricing is
A. generally more effective when barriers to entry exist. B. often effective and a relatively inexpensive means of eliminating competition. C. the practice by which a large, powerful firm attempts to drive its competitors out of the market by temporarily setting an artificially low price. D. legal under the U.S. antitrust laws.