Which of the following could cause the supply curve of loanable funds to shift to the right?
a. increase in productivity
b. increase in the rate of interest
c. decrease in the rate of interest
d. decrease in productivity
e. expectation that future prices will decrease
E
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If the value of the output generated by a country's factors of production within the borders of foreign countries is higher than the value of output of foreign factors of production within its borders, ________
A) the GDP of the country is higher than its GNP B) the GDP of the country equals its trade balance C) the GDP of the country equals its GNP D) the GDP of the country is lower than its GNP
In the year after the stock market crash of 1929, stock prices on average ___
a. were lower than they had been in decades. b. were lower than in 1929 but higher than in the mid-1920s. c. rebounded to a level higher than in 1929. d. cannot be reliably calculated because no buyers could be found for many stocks, and hence no prices were reported.
If the government undertakes expansionary fiscal policy, it:
A. could increase income taxes. B. expects aggregate demand to increase. C. expects aggregate demand to decrease. D. should force people to change their spending patterns.
The concept of marginality is important in economics because
A) individuals make decisions at the margin. B) marginal decisions indicate a lack of importance. C) individuals make decisions based on tastes only. D) large expenditures are the only factor influencing consumption.