At higher rates of interest
A. households save more and businesses invest less.
B. households save more and businesses invest more.
C. households save less and businesses invest less.
D. households save less and businesses invest more.
Answer: A
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When short-term concerns (deadlines) create priorities and longer range management needs are driven out, this part of:
a. McGregor's Law b. Gresham's Law of Planning c. Dorsey's Principle d. Lucien's Law
According to the Ricardian model, the source of comparative advantage is:
a. differences in labor productivity in different countries. b. differences in foreign trade policies followed by the government of various countries. c. differences in resource endowments of an economy. d. differences in the fields of research and development in a country. e. differences in the taste and preferences of the consumers in different countries.
Answer the following question on the basis of the data given for two regions, East and West, of a hypothetical world. East and West have the production possibilities for units of food and clothing given below.East Production PossibilitiesWest Production Possibilities ABCD ABCDFood241680Food4530150Clothing04812Clothing051015Assume that the East region had initially produced combination A and that the West region had produced combination C. If the two regions now specialize based on comparative advantage, the gains (in their combined output) from specialization are
A. 2 units of food and 4 units of clothing. B. 6 units of clothing and 2 units of food. C. 6 units of food and 2 units of clothing. D. 2 units of clothing and 4 units of food.
A payment for the use of any resource over and above its opportunity cost is called
A) accounting profit. B) economic profit. C) normal cost. D) economic rent.