Assuming all else equal, if a household is pessimistic about future income, it is likely to cause a(n):
A) shift in the current credit supply curve of the household to the right.
B) downward movement along the current credit supply curve of the household.
C) upward movement along the current credit supply curve of the household.
D) shift in the current credit supply curve of the household to the left.
A
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Holding the level of prices fixed implies that a given increase in aggregate demand
A) will have a smaller effect on real GDP than would be the case if prices were more flexible. B) will have a larger effect on real GDP than would be the case if prices were more flexible. C) has the same effect on real GDP as when prices are more flexible. D) has a smaller effect on nominal GDP than when prices are more flexible.
Economic development encompasses which of the following measures?
a. Economic growth. b. The political environment. c. Education. d. All of these.
The interest-rate-based transmission mechanism for monetary policy in the Keynesian system indicates that
A. decreases in the money supply lead to increases in the interest rate, which increases investment, which increases the level of real GDP. B. increases in the money supply lead to decreases in the interest rate, which increases investment, which increases the level of real GDP. C. increases in the money supply cause people to spend more, leading to increases in real GDP. D. increases in the money supply lead to decreases in the interest rate, which decreases investment, which decreases the level of real GDP.
For a perfectly competitive firm, the demand curve
a. coincides with the marginal revenue curve. b. both of the other answers are true c. coincides with the market price.