Based on our understanding of the model presented in chapter 11, which of the following will cause a permanent increase in growth?
A) an increase in education spending
B) an increase in the saving rate
C) an increase in capital accumulation
D) all of the above
E) none of the above
E
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Buying in bulk to save money is an example of ________.
A. elastic demand B. consumer surplus C. price gouging D. block pricing
In the Keynesian model, consumption
A) is positively related to income but saving is not systematically related to either income or interest rates. B) and saving are positively related to the real interest rate. C) and saving are positively related to income. D) is positively related to income and saving is negatively related to the stock market.
China runs a current account surplus with the United States. Which of the following must be true about China's balance of payments with the United States?
A) Its net exports must be negative. B) It must run a financial account deficit. C) Its balance of payments must run a deficit. D) Its balance of trade must be in deficit.
To signal to your insurance company that you are a low risk individual, you should
a. Accept an insurance policy with a high deductible b. Accept an insurance policy with a low deductible c. Accept an insurance policy with no co-payments d. None of the above