In the figure above, the DLF curve is the demand for loanable funds curve and the PDLF curve is the private demand for loanable funds curve. If there is no Ricardo-Barro effect, the figure shows a situation in which the government has a budget
A) deficit of $1 trillion.
B) deficit of $1.5 trillion.
C) surplus of $0.5 trillion.
D) deficit of $0.5 trillion.
E) surplus of $1 trillion.
A
Economics
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If real income rises 4%, prices rise 1%, and nominal money demand rises 4%, what is the income elasticity of real money demand?
A) 3/4 B) 4/5 C) 5/6 D) 1
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If extraction technology continues to improve over time,
A) the price of crude oil can continue to fall or stay steady. B) the price of crude oil will increase despite any attempts to stem demand. C) the price of crude oil will only fall if sufficient government taxation is implemented. D) the price of crude oil will only fall if sufficient demand declines are arranged.
Economics