The investment function is represented by
A) an inverse relationship between the interest rate and the value of planned investment.
B) the direct relationship between the interest rate and the value of planned investment.
C) the indirect relationship between taxes and government spending.
D) the direct relationship between taxes and government spending.
A
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Which statement is false?
A. President Eisenhower presided over three recessions. B. At the close of the 20th century the unemployment rate was below 5 percent. C. The United States' longest economic expansion was for six years during the Reagan Administration. D. None of the choices are false.
A central bank is an institution that
A) pays for government expenditures. B) controls a nation's monetary policy. C) runs a country's stock market. D) determines a nation's fiscal policy.
The large number of bank failures in the 1980s compared to the number of failures in earlier decades appears to be evidence __________ the existence of __________ problem in deposit insurance
A) supporting; a moral hazard B) supporting; an adverse selection C) against; a moral hazard D) against; an adverse selection
What are the assumptions of the model of perfect competition? Explain why each is important for short-run and long-run equilibrium