please zoom in to see Question 22Use the Aggregate Demand/Aggregate Supply model to determine which of the following would happen if interest rates went down.O Consumers would buy more cars, houses and other "big ticket" items that are usually bought "on time," thus shifting the AD curve to the right.O Businesses would purchase more capital goods because their net rate of return would increase, thus shifting the AD curve to the rightO Business would expand operations because they become more profitable (ceteris paribus), thus shifting the AS curve to the right.O All the aboveQuestion 23What is the Federal Funds Rate?The rate that the federal government pays on the bonds it sells to the public.O The rate that federal government requires banks to charge to retail customers.The rate that one bank charges to another loans, sometimes just held overnight.The rate that the bank pays to the federal government for money it borrows from the FedQuestion 24Which of the following statements is TRUE?When corn prices increase farmers will increase the supply of wheatO When price of paper increases, supply for paperback books will increaseO When government gives Lipton Tea a subsidy, the supply of tea will increaseO None of the aboveQuestion 25Which of the following is NOT an illustration of the notion of opportunity costThe production of more military goods means fewer resources are available to produce civilian goods.O When a Kansas farmer plants more wheat on her land she leaves less land available to cultivate com.If I buy a pizza, I will not be able to afford to watch a movie.O After the pandemic the US economy is able to increase production of capital goods and consumer goods as wellQuestion 26The most fundamental economic problem in any economy is:O National securityUniversal healthcareO ScarcityO Creative Destruction

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Consumers would buy more cars, houses and other "big ticket" items that are usually bought "on time," thus shifting the AD curve to the right. businesses would purchase more capital goods because their net rate of return would increase, thus shifting the AD curve to the right Ausiness would expand operations because they become more profitable (ceteris paribus), thus shifting the AS curve to the right. all the above estion 23 is the Federal Funds Rate? he rate that the federal government pays on the bonds it sells to the public. The rate that the federal government requires banks to charge to retail customers. the rate that one bank charges to another for loans, sometimes just held overnight. the rate that the bank pays to the federal government for money it borrows from the Fed. stion 24 th of the following statements is TRUE?

Consumers would buy more cars, houses and other "big ticket" items that are usually bought "on time," thus shifting the AD curve to the right. businesses would purchase more capital goods because their net rate of return would increase, thus shifting the AD curve to the right Ausiness would expand operations because they become more profitable (ceteris paribus), thus shifting the AS curve to the right. all the above estion 23 is the Federal Funds Rate? he rate that the federal government pays on the bonds it sells to the public. The rate that the federal government requires banks to charge to retail customers. the rate that one bank charges to another for loans, sometimes just held overnight. the rate that the bank pays to the federal government for money it borrows from the Fed. stion 24 th of the following statements is TRUE?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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