In equilibrium, the MRT should not equal the MRS of all individuals.
A. True
B. False
C. Uncertain
B. False
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The crowding-out effect is the tendency for
A) higher government budget deficits to increase total savings. B) lower private saving to decrease investment. C) higher government budget deficits to decrease investment. D) higher private savings to decrease government budget surpluses. E) lower private saving to increase the budget deficit.
A risk-averse investor will decide whether or not to invest by determining if the expected value of the investment if positive
Indicate whether the statement is true or false
In the above figure, a change in autonomous consumption to 100 would cause the consumption function to
A) become steeper. B) become flatter. C) shift down. D) shift up.
Suppose that the government imposes an excise tax on widgets. The portion of the tax borne by the buyer of widgets depends upon
a. elasticity of demand. b. income of buyers. c. size of the tax that is imposed. d. cross elasticity of demand between widgets and floogles.