In the Keynesian model, whenever planned saving exceeds planned investment
A. real GDP will not be influenced.
B. the interest rate will remain unchanged.
C. there will be unplanned inventory depletion.
D. there will be unplanned inventory accumulation.
Answer: D
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Explain how a business owner who continually practices taste-based discrimination may eventually pay for his decision to discriminate in terms of declining productivity and profits, especially if he is in a highly competitive industry
What will be an ideal response?
According to the life-cycle hypothesis, if the average person expects to live another 48 years, the short-run MPC out of unexpected changes in income is
A) 0.52. B) 0.48. C) 0.9792. D) 0.0208.
If a public service commission requires a natural monopoly to set its price equal to the long-run marginal cost, this will result in
A) excessive economic profits to the monopoly. B) normal economic profits to the monopoly. C) losses to the monopoly. D) either economic profits or losses, depending on the efficiency of the monopoly.
Which of the following is an example of trade policy at the national level?
a. Congress passing legislation to prevent dumping. b. The European Union adopting a common currency c. The World Trade Organization holding a round of negotiations in France d. The U.S. International Trade Commission