Which of the following will lower the interest rate and increase investment spending?
a. An increase in the demand for loanable funds
b. A decrease in the demand for loanable funds
c. An increase in the supply of loanable funds
d. A decrease in the supply of loanable funds
e. An equal and simultaneous decrease in the demand for and supply of loanable funds
C
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Socialism seeks to abolish the market-price system. In the economic way of thinking, socialism would therefore
A) generate tremendous economic growth. B) overcome scarcity. C) lead to a greater coordination among peoples' production and consumption plans. D) allow everybody the opportunity to seek their comparative advantage. E) accomplish none of the above.
Suppose the Fed increases the money supply. Which of the following is true?
A) At the original interest rate, the quantity of money demanded is less than the quantity of money supplied. B) At the original interest rate, the quantity of money demanded is equal to the quantity of money supplied. C) The interest rate must rise for the money market to clear. D) At the original interest rate, the quantity of money demanded is greater than the quantity of money supplied.
The time interval between observations can be all of the following with the exception of data collected
A) daily. B) by decade. C) bi-weekly. D) across firms.
A countercyclical policy says that an economic boom is a more appropriate time for lowering taxes and increasing spending
a. True b. False Indicate whether the statement is true or false