The Ricardian model can be simplified and made more explanatory by assuming that there is only one resource used in producing goods. What did Ricardo assume the resource was?

The interest rate that banks charge other banks for overnight loans is the

A) discount rate. B) Treasury bill rate. C) prime rate. D) federal funds rate.

Within the Keynesian aggregate expenditures model, if the economy is below equilibrium, then there will be:

a. an increase the demand for goods and services. b. an increase in real GDP. c. lower interest rates, which will stimulate aggregate demand and keep the economy at full employment. d. a lower price level, which will quickly guide the economy to full-employment equilibrium.