Whenever a society forgoes current consumption to invest in capital goods
A. it will have less to consume next year.
B. it will be easier for that society to consume less in the future because people will become accustomed to less.
C. it will be forced to produce fewer capital goods in the future.
D. that society can consume more in the future.
Answer: D
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In a competitive industry where different firms have different cost structures, the industry supply curve is:
A) upward sloping. B) downward sloping. C) vertical. D) horizontal.
Refer to Table 15.1. The sources of government funds for Arugula in 2012 total
A) $135 million. B) $195 million. C) $380 million. D) $600 million.
Consider a market with inverse demand p = 100 – 2Q. Firms have no fixed cost and constant marginal cost c
a. Derive the firms' outputs and profits when this market is served by Cournot duopolists. b. How do outputs and profits vary with c? Specifically, use calculus to find the derivative of the output of each firm and profit of each firm with respect to c. c. Suppose the firm's also have a fixed cost of F in addition to the marginal cost c. How does F alter the best response functions and NE? Explain in words. (For technical reasons, assume that both firms still produce a positive level of output in equilibrium)
If a reduction in government borrowing leads to lower real interest rates in the United States,
a. U.S. investors will decrease their investments abroad. b. U.S. exports will decrease relative to imports. c. the inflow of loanable funds from abroad will moderate the fall in the real rate of interest. d. the dollar will depreciate in the foreign exchange market.