When the price of a good falls, there will be
A) an outward shift in the good's demand curve.
B) both an outward shift in the good's demand curve and a movement along the good's demand curve.
C) a movement along the good's demand curve.
D) no change in quantity demanded.
C
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If you were a Keynesian and wanted to stimulate the economy (to increase real GDP), you would
a. increase the money supply to lower the interest rate in order to increase investment b. increase the money supply to lower the interest rate in order to decrease investment c. decrease the money supply to lower the interest rate in order to increase investment d. decrease the money supply, which causes consumption to increase and saving to fall e. increase the money supply, which causes the interest rate to increase and production to increase as well
Suppose that you borrow $100,000 from the bank to purchase some land and you agree to pay 2 percent interest on the loan. If the loan must be repaid in 12 months and the inflation rate is 3 percent during the year, then
A) you will repay the bank with dollars with more purchasing power than you initially borrowed. B) you will repay the bank with fewer dollars than the bank initially loaned you. C) you will repay the bank with dollars with less purchasing power than it initially loaned you. D) the bank will receive fewer dollars, because of inflation, than it had initially expected to receive.