Some economists argue that a rise in the interest rate, brought about by a rise in government borrowing in the loanable funds market to finance a budget deficit, brings in foreign funds in search of the higher interest rate return. This, in turn, dampens the rise in the interest rate. If this is true as far as it goes, there will be __________ crowding out than there would be if foreign funds did
not flow into the country.
A) more
B) less
C) the same amount of
D) none of the above
B
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The aggregate supply curve (short run) ________.
A. graphs as a horizontal line B. slopes downward and to the right C. slopes upward and to the right D. graphs as a vertical line
The long boom occurred in the
A) 1920s and 1930s. B) 1940s and 1950s. C) 1960s and 1970s. D) 1980s and 1990s.
Firm's should raise the price of their goods
a. If the demand for the product is elastic b. If it acquires a firm selling a complement good c. If it acquires a firm selling a substitute good d. Both a and c
If consuming more of a good doesn't affect a consumer's well-being, then:
A. the marginal utility of the good is positive. B. the marginal utility the good is negative. C. the marginal utility the good is constant. D. the marginal utility the good is zero.