When economists assume that people are rational, they assume that
a. consumers maximize profits.
b. firms maximize revenues.
c. consumers maximize utility.
d. firms maximize output.
c
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If you invest $4,000 in a savings account paying 3 percent interest, how much will your investment be worth in 25 years?
What will be an ideal response?
The formula, , is equal to the
A) expenditure multiplier. B) marginal propensity to export. C) marginal propensity to consume. D) marginal tax rate. E) total amount of autonomous expenditure.
The U.S. government has accumulated a net national debt of almost 60% of GDP. Compared to other countries, this is:
a. smaller than that of many fiscally healthy countries b. larger than that of many fiscally healthy countries c. about the same as that of troubled debtor nations d. larger than that of troubled debtor nations
The present value of $1 million to be received in the future will
a. increase if the interest rate rises. b. increase if the payment is received at a more distant time in the future. c. be greater than $1 million. d. increase if the interest rate were to fall from 8 percent to 4 percent.