The model of supply and demand leads to the prediction that low interest rates cause:
A. a decrease in housing prices, especially in cities with plenty of room for expansion.
B. an increase in housing prices, especially in cities with plenty of room for expansion.
C. an increase in housing prices, especially in cities with limited land.
D. a decrease in housing prices, especially in cities with limited land.
Answer: C
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Full employment is defined by all economists as precisely 5 percent of the labor force
a. True b. False Indicate whether the statement is true or false
When the economy has an income tax that is variable, the multiplier is
a. unchanged. b. larger. c. smaller. d. unpredictable.
Which of the following is closest to the future value of an $800,000 deposit earning 2 percent interest annually after 20 years?
A. $1,188,758 B. $1,120,262 C. $1,176,224 D. $1,201,204
Over 95 percent of the total public debt is held by banks and private individuals.
Answer the following statement true (T) or false (F)