(04.07 LC) The supply of loanable funds is ________ because households save more at higher interest rates, while the demand for loanable funds is ________ because firms prefer to borrow at lower interest rates.

(01.08 LC)Which investment type describes loans to businesses or governments?

(06.01–06.06 HC) Country Alpha and Country Beta are trading partners each with a current account balance of zero. Country Alpha’s currency is the dollar, and Country Beta’s currency is the euro. If inflation in Country Alpha increases while Country Beta’s price level stays flat, will it result in a current account deficit, surplus, or no change for Country Alpha? Explain. Draw a graph of the foreign exchange market for the dollar of Country Alpha. Illustrate the effect of the inflation change from part (a) on the value of its dollar compared to the euro of Country Beta. Now if tastes in Country Beta shift toward goods of Country Alpha, what will be the impact on the demand for the dollar of Country Alpha? Explain. Based on part (c), what will be the effect on the value of the dollar of Country Alpha compared to the euro of Country Beta?

(03.08 MC) If the government of a country is implementing a policy of increasing taxes in order to reduce aggregate demand, then which of the following is true for the economy of the country?

(03.01 MC)Imagine the Federal Reserve Board makes credit more available within the U.S. financial system by loaning money to banks. Which phase of the business cycle is the Fed trying to encourage?

(02.04 LC) The CPI will be ________ when there is ________ in the quality of a good and its price remains the same.

(02.01 MC) Which of the following statements explains the difference between final goods and intermediate goods with regards to the GDP?

(02.04 MC) If the CPI in Year 1 is 120 and in Year 2 is 130, then what impact will this have on the price level and cost of living for individuals?

(03.01 MC)Imagine a series of events results in a decrease in investments in U.S. businesses. Which phase of the business cycle does this reflect?

(02.05 LC)Why was the Glorious Revolution significant to the politics of the British colonies?