Refer to the information provided in Figure 26.4 below to answer the question(s) that follow.
Figure 26.4Refer to Figure 26.4. Suppose the economy is at Point A, a decrease in the price level moves the economy to Point
A. E.
B. B.
C. C.
D. D.
Answer: C
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Which of the following is true of the banks that operate under Islamic law?
a. Islamic banks are not allowed to lend out to private firms. b. Islamic banks do not function as intermediaries between borrowers and lenders. c. Islamic Banks are not allowed to offer checking accounts or traveler's checks. d. Islamic banks are required to offer trade-related services free of cost. e. Islamic banks do not charge interest on loans or pay interest on deposits.
When the supply of land is perfectly inelastic, the economic burden of an annual tax on land
a. falls entirely on the people who owned land when the tax was imposed. b. is passed on to future buyers of land in the form of higher prices. c. is split between present and future landowners. d. cannot be determined without information on the elasticity of the demand for land.
Other things the same, the aggregate quantity of goods demanded decreases if
a. real wealth falls. b. the interest rate rises. c. the dollar appreciates. d. All of the above are correct.
How do public goods differ from private goods?
What will be an ideal response?