Other things equal, the steeper the slope of the aggregate supply curve, the more effective will be the expansionary fiscal policy
a. True
b. False
Indicate whether the statement is true or false
False
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If there is an excess supply of bonds at a given price of bonds, then
A) the interest rate will fall. B) the interest rate will rise. C) the price of bonds will fall. D) the interest rate may rise or the interest rate may fall depending upon the reasons for the excess demand for bonds.
The difference between scarcity and a shortage is that
A) scarcity is caused by poverty and shortages are caused by natural disasters. B) shortages are a type of scarcity caused by natural disasters while scarcity is caused by human errors. C) scarcity always is a part of human life while shortages usually are temporary. D) shortages are always part of human life while scarcity is usually temporary.