If expectations about the future don't change at all, then an economic downturn will generally:
A. decrease savings at a given interest rate and shift the supply curve for loanable funds to the left.
B. increase savings at a given interest rate and shift the supply curve for loanable funds to the left.
C. decrease savings at a given interest rate and shift the supply curve for loanable funds to the right.
D. increase savings at a given interest rate and shift the supply curve for loanable funds to the right.
A. decrease savings at a given interest rate and shift the supply curve for loanable funds to the left.
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Suppose you purchase a bottle of vitamin water with a price of $3. The price of $3 best reflects the function of money as a ________, and when you take $3 out of your wallet to purchase the bottle, money is functioning as a ________
A) medium of exchange; standard of deferred payment B) store of value; unit of account C) unit of account; medium of exchange D) medium of exchange; store of value
If an economy's resources are fully employed,
a. a great deal of unemployment will be needed to achieve even a small reduction in inflation. b. the aggregate supply curve (and thus the Phillips curve) will be flat. c. the aggregate supply curve (and thus the Phillips curve) will be steep. d. Both a and c are correct.