Forecasts of an inevitable exhaustion of essential natural resources are “simply beside the point” because higher prices (i) reduce quantity demanded; (ii) stimulate supply; (iii) stimulate alternative technology.
A. i only.
B. ii only.
C. iii only.
D. i, ii, and iii.
Answer: D
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Which of these economies has the highest saving rate?
A) Greece B) China C) United States D) Brazil E) Japan
In the 1970s, _____
a. the market interest rate increased above the rate that banks could offer b. banks and thrifts were able to borrow at low interest rates to support outstanding loans c. the market interest rate decreased below the rate that banks could offer d. banks and thrifts were forced to call in outstanding loans e. banks and thrifts were bailed out by the FDIC
In the long run, a leftward shift of the aggregate demand curve will lead to a(n):
a. increase in equilibrium output but will not change the price level in an economy. b. increase in the price level as well as the equilibrium output in an economy. c. decrease in the price level but will leave the equilibrium output unchanged in an economy. d. increase in the price level but will leave the equilibrium output unchanged in an economy. e. decrease in the price level as well as the equilibrium output in an economy.
Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the nation's:
a. Real risk-free interest rate will remain unchanged, but the money multiplier will rise. b. Real risk-free interest rate will fall causing real GDP to rise. c. Real risk-free interest rate will fall causing the money multiplier to rise. d. Real risk-free interest rate will rise but real GDP will remain the same. e. Real risk-free interest rate will rise causing real GDP to fall.