If the marginal propensity to consume is 0.8 and aggregate expenditures initially decrease by $200 million, then the aggregate demand curve will shift ________ , holding the price level constant
a. inward by $1 billion
b. outward by $1 billion
c. inward by $200 million
d. outward by $200 million
a
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Eurobanks can offer a ________ rate on dollar loans and a ________ rate on dollar deposits than their domestic U.S. competitors
A) higher, lower B) lower, higher C) lower, lower D) higher, higher
If 20 percent increase in the price of a good leads to a 60 percent decrease in the quantity demanded, then what is the price elasticity of demand?
A. 1/6. B. 1/3. C. 30. D. 3.
Which of the following was one the key factors sending the economy into the Great Recession?
a. declining home prices and rising foreclosure rates b. declining interest rates and declining lending c. declining labor participation rates and rising retirement rate d. none of the above were reasons for the Great Recession
Increases real GDP
What will be an ideal response?