The Congressional Budget Office reported that federal budget deficits in the United States were likely to increase in future years, and these higher deficits might "pose a threat to the economy by crowding out business investment and threatening a
spike in interest rates." This higher budget deficit would be represented graphically by
A) a shift in the supply curve for loanable funds to the right.
B) a movement to the right along the supply curve for loanable funds.
C) a shift in the supply curve for loanable funds to the left.
D) a movement to the left along the supply curve for loanable funds.
C
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If the market rate of interest is 13%, the growth of nominal GDP 9%, and the growth of real GDP 2%, then
A) the rate of inflation is 11%. B) the rate of inflation is 4%. C) the rate of inflation cannot be determined. D) none of the above
Which of the following is a function of the lender of last resort?
a. Keeping the velocity of money at a low level b. Reducing the supply of money and loans in an economy c. Providing short-term emergency loans in conditions of financial crisis in an economy d. Increasing the supply of money and the quantity of loans in an economy
A variable that induces a change in another variable is a(n):
A) dependent variable. B) independent variable. C) codependent variable. D) constant variable
The condition P = MC implies that an individual who values the product at P will receive
A. positive consumer surplus. B. no consumer surplus. C. only producer surplus. D. negative consumer surplus.