Which of the following will cause aggregate private spending to decrease?

A) a reduction in government spending
B) an increase in expected future interest rates
C) an increase in expected future taxes
D) all of the above
E) none of the above


D

Economics

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At the XYZ Co, a unit of capital costs three times as much as a unit of labor. If the isoquants are convex, and the firm does not change its input mix in the long run, we can conclude that

A) MPK = 3 ? MPL . B) the firm will not hire any capital. C) the firm will hire 3 times as much labor as capital. D) the firm will hire 3 times as much capital as labor.

Economics

A perpetual payment of $10,000, offered for sale at $125,000, is being offered at an effective yield of

A) 8%. B) 9.2% C) 12.5%. D) 80%. E) 92%.

Economics

Although all points on the PPF are efficient, that alone does not tell us which point is "best" for the society

a. True b. False Indicate whether the statement is true or false

Economics

In the Ricardian model, the marginal product of labor:

a. first rises, then falls, as more labor is employed to produce a good. b. first falls, then rises, as more labor is employed to produce a good. c. continuously falls, as more labor is employed to produce a good. d. does not change, as more labor is employed to produce a good.

Economics