Evidence from the Great Recession suggests that the crowding out effect:
A. had a very detrimental effect on private savings.
B. was minimal at that time.
C. can be quite large in times of recession, and is reinforced with recent research from 2008.
D. may hold, although the evidence is somewhat contradictory.
Answer: B
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Which of the following is the best example of money used as a medium of exchange?
A. Prices of products in a store in Mexico are marked in terms of U.S. dollars. B. A farmer stores $100 dollar bills in a strong box under the floor in a barn. C. A plumber unclogs a drain for a carpenter, who repairs broken steps for the plumber. D. In a prisoner of war camp cigarettes are traded for socks, candy and/or food, even by nonsmokers.
The above table gives the demand and supply schedules for Blu-ray discs. If the price of a Blu-ray disc is $8, there is a ________ and the price of a compact disc will ________
A) shortage; rise B) shortage; fall C) surplus; rise D) surplus; fall
An increase in the supply of money, other things being equal, will raise the equilibrium interest rate
a. True b. False Indicate whether the statement is true or false
Which of the following groups would have the highest unemployment rates?
a. married men b. white workers c. college graduates d. teenagers