ihw9ANS - Ihw9 Question1 - Single Correct A B C D 1.0 Point...

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Question1 - Single Correct 1.0 Point An increase in the budget deficit, in the long-run A decreases the demand for loanable funds B increases the demand for loanable funds. C increases the supply of loanable funds. D does not influence the supply of or the demand for loanable funds. WITH DEFICIT, GOV’T BORROWS MORE INCREASING DEMAND FOR FUNDS (AND INTEREST RATE AND THUS CROWDS OUT INVESTMENT) Question2 - Single Correct 1.0 Point The natural rate of unemployment is the A unemployment rate that would prevail with zero inflation. B rate associated with the highest possible level of GDP. C difference between the long-run and short-run unemployment rates. D amount of unemployment that the economy normally experiences. BAD DEFINITION. BETTER – LONG-RUN AVG UNEMPLOYMENT RATE, OR UNEMPLOYMENT RATE WITH NO CYCLICAL EMPLOYMENT OR UNEMP RATE AT WHICH INFLATION DOES NOT INCREASE Question6 - Single Correct 1.0 Point An increase in government purchases is likely to A decrease interest rates. B result in a net decrease in aggregate demand. C crowd out investment spending by business. D decrease money demand. LR – INCREASE IN G WITH ECONOMY AT FULL EMPLOYMENT MUST REDUCE (CROWD OUT) SOMETHING = LARGELY INVESTMENT Question10 - Single Correct
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This document was uploaded on 10/31/2011 for the course 202 101 at Rutgers.

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ihw9ANS - Ihw9 Question1 - Single Correct A B C D 1.0 Point...

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