In the figure above, the leftward shift from the demand for loanable funds curve DLF1 to the demand for loanable funds curve DLF3, could be the result of
A) the economy entering an expansion.
B) the economy entering a recession.
C) an increase in interest rates during an economic expansion.
D) a decrease in interest rates during an economic recession.
E) a government budget surplus.
B
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Which of the following policy combinations were used by the government during the financial crisis of 2007-2009 in the U.S.?
A) Income tax rates were increased and payroll taxes were reduced. B) Payroll tax rates were increased and government spending was reduced. C) A combination of both fiscal and monetary policies were used. D) The eligibility period for unemployment insurance was shortened.
If the nominal exchange rate between the American dollar and the New Zealand dollar is 1.36 New Zealand dollars per American dollar, how many American dollars are required to buy a product that costs 3.50 New Zealand dollars?
A) $2.14 B) $2.24 C) $2.57 D) $4.76