A decrease in autonomous consumer expenditure causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________, everything else held constant
A) rise; LM; right
B) rise; IS; right
C) fall; IS; left
D) fall; LM; left
C
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If the supply curves for the following goods were plotted, they all would slope upward except one. Which is the exception?
a. red Corvettes b. yogurt c. diamond rings d. original copies of the Mona Lisa e. wine from Greece
When the Fed increases or decreases the money supply, these actions are called
a. discounting b. money printing c. moral suasion d. open market operations e. interest payments
Behavioral economists criticize neoclassical models as being:
A. Messy and imprecise B. Accurate but artificially elegant C. Precise but inaccurate D. Vague but accurate
If Mario's Pizza, a large frozen pizza distributor, builds a tomato sauce plant near Red Tomatoes, a large tomato farm, to reduce the costs of transporting fresh tomatoes, the tomato sauce plant is a(n) ________.
A) negotiation cost B) monitoring cost C) information asset D) transaction-specific asset