The crowding in of private investment is associated with:
a. a leftward shift of the aggregate demand curve for an economy
b. a leftward shift of the aggregate supply curve of an economy.
c. a reduction in the level of government spending.
d. a reduction in corporate income taxes.
e. an increase in aggregate demand induced by increased government borrowing.
e
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A point outside the production possibilities curve [PPC]:
a. represents inefficient use of resources. b. represents the prevalence of unemployment. c. is attainable if all resources are used efficiently. d. represents more resources than are currently available. e. will never be attainable, even if the quantity of resources increases.
C. stayed relatively low, due to the lack of lending by banks, reducing the effectiveness of the money multiplier.
A. import, because they are assembled in China. B. import, because they are assembled in Mexico. C. export, because they are assembled in China. D. export, because they are produced in the U.S.
Reverse engineering is the process of a firm buying other firms' products and:
A. copying them within the limits of law. B. copying them unlawfully. C. selling them in the black market for an exorbitant price. D. selling them in the market for a cheaper price than those firms do.
When the Fed sells bonds, the Fed:
A. reduces the reserves and the federal funds rate increases. B. increases the reserves and the federal funds rate increases. C. reduces the reserves and the federal funds rate decreases. D. increases the reserves and the federal funds rate decreases.