Which of the following will lead to a decrease in the equilibrium interest rate in the economy?
A) a decrease in GDP
B) an increase in the reserve requirement
C) an increase in the price level
D) a sale of government securities by the Fed
E) an increase in the discount rate
A
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A government is running a budget surplus if:
A. government revenue is less than government spending. B. government revenue exceeds government spending. C. imports exceed exports. D. exports exceed imports.
An increase in the supply of capital, which is a complement to labor, will lead to
A) an increase in the quantity of labor demanded. B) a decrease in the demand for labor. C) an increase in the demand for labor. D) a decrease in the quantity of labor demanded.
Black Oil Company considered building a service station in a new location. The owners and their accountants decided that this was the profitable thing to do. However, soon after they made this decision, both the interest rate and the cost of building the station changed. In which case do these changes both make it less likely that they will now build the station?
a. Interest rates rise and the cost of building the station rises. b. Interest rates rise and the cost of building the station falls. c. Interest rates fall and the cost of building the station rises. d. Interest rates fall and the cost of building the station falls.
When it comes to enacting policy changes, loss aversion often leads to status quo bias because:
A. the resistance from those who stand to lose from the policy often overwhelms the support from those who stand to gain. B. people's estimates of their gains from the policy are often too large. C. people's estimate of their losses from the policy are often too small. D. the support from those who stand to gain from the policy often overwhelms the resistance from those who stand to lose.