According to this Application, the Fed increased its lending by hundreds of billions of dollars to financial institutions as a response to the ongoing financial crisis
This increase in loans to financial institutions increased the supply of money in the economy. When the supply of money increases, the money supply curve will
A) shift to the right, increasing the interest rate. B) shift to the left, increasing the interest rate.
C) shift to the right, decreasing the interest rate. D) shift to the left, decreasing the interest rate.
C
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The figure above shows Prakash's and Gail's production possibilities frontiers for writing books and magazine articles
a. What is Prakash's opportunity cost of a book? What is Gail's opportunity cost? Who has the comparative advantage in writing books? b. Who has the comparative advantage in writing magazine articles? c. According to their comparative advantages, who should write books and who should write magazine articles?
What is the distinction between gross investment and net investment?
What will be an ideal response?