Schyler is able to take out a loan for $3,000 for one year at an annual interest rate of 10 percent. After calculating her return to be $200, Schyler will realize she will:
A. lose $100 overall if she takes out the loan.
B. lose $200 overall if she takes out the loan.
C. make $100 overall if she takes out the loan.
D. make $200 overall if she takes out the loan.
Answer: A
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When saving leaks out of the circular flow of income and spending,
a. total income necessarily falls. b. it leaks out of the financial system. c. it flows to borrowers. d. it increases the size of the spending flow.
Which of the following was not a lesson from the 2007-2009 financial crisis?
a. Financial regulations were too "light" prior to the crisis. b. Excessive complexity made the financial system more fragile and dangerous. c. Both monetary policy and fiscal policy are needed in order for the economy to recover. d. Regulatory failures were based primarily on poor job performance.
Which of the following will occur if the aggregate quantity supplied is less than the aggregate quantity demanded?
A. Aggregate demand will shift to the right B. Aggregate supply will shift to the left C. There will be a shortage D. There will be a surplus
Juanita earned a B.S. in engineering and went to work for a large defense contractor in a small town in California. When the government cut spending, Juanita and 99 others were laid off. The only other business in the town is growing grapes to be made into raisins, but the growers refuse to hire laid-off engineers, knowing they will leave at the first opportunity. The unemployment Juanita is experiencing is:
A. cyclical. B. structural. C. permanent. D. frictional.