If consumption has fallen, which of the following could be TRUE?
a. Taxes have fallen.
b. Income has fallen.
c. Taxes and income have fallen.
d. Disposable income has risen.
Answer: b. Income has fallen.
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Which of the following securities has the lowest interest rate?
A) junk bonds B) U.S. Treasury bonds C) investment-grade bonds D) corporate Baa bonds
When price level in the United States rises,
a. there is a increased demand for borrowed money. b. producers' demand for new machinery increases, contributing to an increase in aggregate demand. c. Americans tend to buy more foreign goods and services. d. the French, Canadians, and Japanese would find our exports more attractive. e. to replenish the value of your real wealth, you would save less and consume more.
f a small country in Africa receives a huge investment in capital as a major corporation relocates there, its production possibilities curve will most likely ______.
a. become a straight line b. shift outward c. shift inward d. split into two smaller ones
Which of the following statements is a positive economic statement?
A. The number of families living in poverty in the United States is too high. B. Government programs to help the poor are just making problems worse. C. One in every five children in the United States is living in poverty. D. The government should eliminate poverty in the country.