Refer to Figure 4.1. A shift from S2 to S1 will result from which of the following?
A) an increase in expected future profits
B) an increase in net exports
C) a decrease in corporate taxes
D) an increase in tax credits for savings
B
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
In October of 2014, the nominal interest rate earned on money market accounts was around 0.20 percent. This interest rate is a measure of which of the following?
A) the opportunity cost of holding money B) the inflation rate C) the demand for money D) the real interest rate
When firms have market power, it means that they:
A. do not noticeably affect the market quantity offered for sale. B. have no control over the market price. C. can noticeably affect the market quantity available for sale. D. can noticeably affect the market price.
In June of 2016, the citizens of the United Kingdom (UK) voted in favor of leaving the European Union (EU). The decision to leave is now commonly referred to as "Brexit." Briefly summarize both the arguments used for the UK remaining in the EU and the arguments used for the UK leaving the EU.
What will be an ideal response?