According to the Ricardian equivalence proposition, current deficits
A) will not affect consumption or national saving.
B) will affect consumption but not national saving.
C) will affect national saving but not consumption.
D) will affect both consumption and national saving.
A
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The real rate of interest equals 5% and the expected rate of inflation equals 2%. The nominal rate of interest equals
A) 2%. B) 3%. C) 5%. D) 7%.
Harry's HVAC refuses to sell diagnostic software and spare parts of its heating and cooling systems to third parties. Why would it want to do that?
a. To ensure that the customer knows that they are stuck with Harry's service technicians b. To ensure that only the highest paid personnel get to service the units c. To ensure that the customers do not buy second-class servicing and then infer faulty design if a unit breaks down due to inadequate service d. All of the above
A market is called monopolistically competitive if each firm has the same product but consumers can choose to purchase the product from any firm.
Answer the following statement true (T) or false (F)
When you have a job and your employer compensates you for your time with money, resulting in both of you being better off, it is an example of a voluntary exchange.
Answer the following statement true (T) or false (F)