Figure 10-8
If the economy were operating at point a in , the real rate of interest would tend to
a.
decrease and move the economy toward point c.
b.
decrease and move the economy toward point b.
c.
increase and move the economy toward point c.
d.
increase and move the economy toward point b.
b
You might also like to view...
Advantages of specialization do not include: a. reduced interdependence
b. the exploitation of comparative advantage. c. the ability to utilize more complex production processes. d. Productivity gains from learning by doing.
It is efficient to increase the output of computers if
A. society considers the extra computers more valuable than other goods foregone to produce the computers. B. the opportunity cost of more computers is greater than their marginal utility. C. computer production can be increased only if production of other goods is decreased. D. the price of the computers is equal to their average cost.
Why are the bonds held by the Fed and government agencies excluded from the privately held debt figures?
a. The U.S. Treasury does not have to pay off these bonds. b. These bonds were not issued by the U.S. Treasury. c. These bonds do not create a net-interest obligation for the federal government. d. These bonds are not interest-bearing bonds.
An important prerequisite for the price system to work is an economy-wide respect for _______ rights
Fill in the blank(s) with correct word