An increase in government purchases shifts the ________ curve to the ________.
A) aggregate demand; left
B) aggregate supply; left
C) aggregate demand; right
D) aggregate supply; right
Answer: C) aggregate demand; right
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In the above figure, if the interest rate is 8 percent per year, the quantity of money demanded is
A) less than the quantity of money supplied, and the interest rate will change. B) less than the quantity of money supplied, and the demand curve for money will shift. C) greater than the quantity of money supplied, and the supply curve of money will shift. D) greater than the quantity of money supplied, and the interest rate will change. E) greater than the quantity of money supplied, and the demand curve for money will shift.
If marginal costs rises above average costs, average costs must
a. Be increasing b. Be decreasing c. Stay constant d. None of the above
When an investor buys a corporate bond, the ________ the bond is a loan to the corporation
A) interest on B) face value of C) coupon payment on D) dividend payment on
An increase in the money supply, ceteris paribus, usually:
A. Increases the interest rate and increases aggregate demand B. Increases the interest rate and decreases aggregate demand C. Decreases the interest rate and increases aggregate demand D. Decreases the interest rate and decreases aggregate demand