(04.01–04.07 HC) For all graphs, be sure to correctly and completely label all axes and curves and use arrows to indicate the direction of any shifts.The loanable funds market in an economy is in equilibrium. Draw a correctly labeled graph of the loanable funds market, labeling the equilibrium real interest rate and the equilibrium quantity. Show the impact of a decrease in the money supply for this economy in your graph from part (a). Will the result be a shortage or surplus in the loanable funds market at the original equilibrium? Will lenders of existing fixed-rate loans be better or worse off as a result of the change in the real interest rate? How will investment spending on facilities and equipment in this economy be impacted? Explain.

(01.06 MC) Use the graph to answer the question that follows.The graph for a competitive output market shows demand shifting from D to D′ and supply shifting from S to S′. Which pair of events is consistent with these two changes?

(02.04 MC) Which of the following is true about the consumer price index (CPI) as an economic indicator?

(03.08 LC) Which of the following best explains the reason for the lags in discretionary fiscal policy?

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(05.07 MC) The policy most likely to lead to a rightward shift of the long-run aggregate supply curve is

(04.05 MC) Assuming money supply to be constant, under which of the following scenarios will the nominal interest in an economy increase?

(04.02 MC) A bank is currently giving out loans at an interest rate of 17% for an expected inflation rate of 3%. What is the current real interest rate in the economy?

(02.01 MC)This question refers to the following excerpt.”Made in the month of September last between the colony of Canada, the savages its allies, and the Iroquois in a general assembly of the chiefs of each of these nations convened by Monsieur the Chevalier de Callière, governor and lieutenant-general for the King in New France, at Montreal on August 4, 1701.As only the deputies of the Huron and the Odawa were here last year when I made peace with the Iroquois for myself and all my allies, I deemed it necessary to send the Sieur de Courtemanche and the Reverend Father Enjalran to all the other nations, my allies, who were absent, to inform them of what had happened and to invite them to send each one’s chiefs with the Iroquois prisoners they held in order to hear my words all together.”Source: from The Great Peace of Montreal (1701), in which a representative for each of nine indigenous groups assented to de Callière’s termsWhich of the following was a motivation that most likely contributed to the events described in the excerpt?

(05.04 MC) Which of the following best explains the difference between a government debt and a budget deficit?