A lower real interest rate typically induces consumers to:
A. Save more
B. Buy fewer imported goods
C. Purchase more goods that are bought using credit
D. Purchase fewer goods that are bought without using credit
C. Purchase more goods that are bought using credit
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Full employment occurs when
A) the sum of frictional and structural unemployment is zero. B) the cyclical unemployment rate is zero. C) the structural unemployment rate is zero. D) the unemployment rate is zero. E) the frictional unemployment rate is zero.
There will be an increase in supply when
A) a consumer's income increases. B) there is an improvement in technology. C) the demand curve shifts. D) the market price rises from $3 to $4.
Which of the following can be classified as a regressive tax?
a. Excise tax. b. Sales tax. c. Gasoline tax. d. All of these.
There are two states of the world. The person receives $100 in state one which occurs with probability 0.6. If the person is rational and their expected return is $80, then in state two the person must receive
a. $20 b. $25 c. $50 d. $100