If the combination r = 6% and Y = $500 billion is on the LM curve, we know that the combination r = 4% and Y = $500 billion would represent
A. a movement up the Fed rule.
B. the Fed rule shifting to the right.
C. the Fed rule shifting to the left.
D. a movement down the Fed rule.
Answer: B
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The public debt
A. refers to the debts of all units of government-federal, state, and local. B. consists of the total debt of American households, businesses, and government. C. refers to the collective amount that American citizens and businesses owe to foreigners. D. consists of the historical accumulation of all federal government deficits and surpluses.
Strategic behavior is a result of the interdependence in decision making between firms
Indicate whether the statement is true or false
Figure 34-7
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In Figure 34-7, AB represents the production possibilities of Pestoland and CD that of Pastaland. Pestoland has a comparative advantage in pasta because it
A. gets more pasta from a given decline in pesto than Pastaland does. B. gets more pesto from a given decrease in pasta production. C. can produce more pasta than Pastaland. D. can produce more pasta and pesto than Pastaland.
If the slope of the consumption schedule is 0.75, then the slope of the saving schedule is:
A. 0.25 B. 0.75 C. 1.25 D. Cannot be determined from the data