Which of the following will increase the demand for loanable funds?
a. a newly established consumption tax
b. a decrease in the real interest rate
c. an increase in the real interest rate
d. creation of an investment tax credit for businesses
d
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Using the information in the table above, net exports equals
A) $1,370 billion. B) $650 billion. C) $20 billion. D) -$70 billion.
When real GDP exceeds potential GDP, then the economy has
A) an inflationary gap. B) a below-full-employment equilibrium. C) a recessionary gap. D) None of the above answers are correct.
The price of soft drinks increases. Which of the following is not part of the likely chain of events that follows from this price change?
A. The demand for fruit juices increases. B. The manufacturers of soda?canning machines lay off some workers. C. Producers of soft drinks increase their production of soft drinks. D. Some consumers of soft drinks reduce their consumption of soft drinks.
The marginal product of the fourth gizmo worker hired is
A) 1. B) 3. C) 5. D) 10.