Which of the following reduced aggregate demand and thereby contributed to the crisis of 2008?
a. a rise in the value of the U.S. dollar
b. falling housing and stock prices
c. an increase in the real rate of interest
d. optimism about future economic conditions
B
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Figure 5-3
Assume the market consists of three consumers with the demand curves in Figure 5-3. At a price of 1, the total market demand is
A. 40. B. 80. C. 140. D. 150.
The rule of MC = MR does not apply to a monopolist
a. True b. False Indicate whether the statement is true or false
What is the best definition of legal tender?
a. a medium of exchange that has been established through custom or tradition b. a medium of exchange that the government has officially declared to be money c. money that is in the form of metallic coins and printed paper d. money that is backed by the gold standard
Future generations are most likely to lose as a consequence of budget deficits if
A. growth of the national debt causes high interest rates that discourage private capital accumulation. B. internally held national debt rises as a percentage of GDP. C. the national debt is continually rolled over, and is never paid off. D. foreigners buy more and more of our national debt, forever.