The change illustrated in the figure above is part of the transmission process of the Fed's monetary policy. As a result of the increase in the supply of loanable funds, aggregate demand ________, real GDP ________, and the price level ________
A) increases; decreases; falls
B) decreases; decreases; falls
C) increases; increases; rises
D) increases; does not change; does not change
E) None of the above answers is correct.
C
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Answer the following statement(s) true (T) or false (F)
1. A non-congested toll road is an example of a good that is excludable, but not rivalrous in consumption. 2. Public goods can frequently be provided by private action when the resulting benefits are widespread. 3. All economists agree that a public good is one the is nonrivalrous and nonexcludable. 4. When a public goods increases the desirability of living in a certain area, benefits tend to be captured entirely by an increase in land values. 5. In a Clarke tax scheme, the amount of tax that a person pays depends, in part, on his revealed preference for the public good.
If the Federal Reserve conducts open market ________, the money supply ________, shifting the LM curve to the left, everything else held constant
A) purchases; decreases B) sales; decreases C) purchases; increases D) sales; increases
For the affected individuals, pecuniary externalities can be as harmful as technological externalities
a. True b. False
Describe the economic effects of the U.S. price supports and import quotas for sugar
What will be an ideal response?