As a result of the recession in 2008, the default risk increased. How did this change affect the loanable funds market?
A) There was a movement up along the supply of loanable funds curve.
B) There was a leftward shift in the supply of loanable funds curve.
C) There was a movement down along the demand for loanable funds curve.
D) There was a rightward shift in the supply of loanable funds curve.
B
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Explain the three lags that make it difficult to time changes in discretionary policy properly
In the Keynesian aggregate expenditures model, "aggregate expenditures" refer to:
A. the amount of GDP that could be produced if unemployment were zero. B. the combined expenditures of consumers, businesses, governments, and foreigners (net exports). C. the amount of demand for consumer goods that would arise if all citizens had all the income they wanted. D. consumer spending measured in constant prices.
Which of the following is a normative statement?
A. An economy with high unemployment can be worse off than an economy with high inflation. B. A decrease in the rate of unemployment will lead to upward pressure on consumer prices. C. An increase in consumer income will lead to increased sales of beef. D. An increase in the income tax will cause a greater reduction in savings than an increase in the sales tax.
Due to extremely large fixed costs, an electricity generating plant probably experiences which of the following returns to size?
A. diseconomies of scale B. economies of scale C. diminishing marginal product D. constant returns to scale