An increase in government expenditures is an example of expansionary fiscal policy.
Answer the following statement true (T) or false (F)
True
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A highly technical product is more likely to be sold by mass advertising as it signals to the consumers that the product is of dependable quality
Indicate whether the statement is true or false
If a new entrant (or an established firm) wants to leave a contestable market,
a. all, or nearly all of, the invested capital values can be recovered. b. another firm will always enter to take its place. c. it must accept large losses in its capital investment, so it is unlikely to exit. d. its leaving will be contested by regulators in the market who seek to prevent exit.
M2 is equal to M1 plus:
a. savings deposits, money market deposit accounts, small time deposits, and eurodollars. b. savings deposits, money market deposit accounts, money market mutual funds, and eurodollars. c. small time deposits, money market deposit accounts, money market mutual funds, and eurodollars. d. savings deposits and small time deposits of less than $100,000. e. money market mutual funds, money market deposit accounts, savings deposits, large time deposits, and repurchase agreements.
A decrease in the price level will
a. have no effect on aggregate demand b. decrease aggregate demand c. decrease aggregate expenditure d. decrease the equilibrium level of national income e. increase the equilibrium level of national income