An unanticipated decline in investment demand within the new classical model will cause
a. the price level to fall with no effect on output.
b. output to fall with no effect on the price level.
c. both the price level and output to fall.
d. no change in either the level of price or output.
C
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Government purchases of goods and services are
A. exhaustive because they directly absorb or employ resources and account for production. B. neither exhaustive or nonexhaustive because of the tax revenues that finance these purchases. C. nonexhaustive because they do not directly absorb resources and account for production. D. both exhaustive and nonexhaustive because in some cases they do directly absorb resources or account for production and in other cases they do not.
Other things remaining the same, a fall in the price of peanuts will ________
A. increase the supply of peanuts B. decrease the supply of peanut butter C. decrease the quantity supplied of peanuts D. decrease the supply of peanuts
The required reserve ratio is required reserves stated as a percentage of checkable deposits
a. True b. False Indicate whether the statement is true or false
Discuss three possible solutions for reducing traffic congestion on freeways. Be sure to explain what effect each would have on the supply and/or demand for freeway space