The substitution effect of an increase in the interest rate will result in an increase in
a. consumption when young and increase in savings when young.
b. consumption when old and an increase in savings when young.
c. consumption when young and an increase in savings when old.
d. savings when old and an increase in consumption when old.
b
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In an open economy, increases in government spending can crowd out consumption, investment, or net exports
Indicate whether the statement is true or false
The efficient quantity of gasoline to sell in Motorland is
A) 1.7 million gallons per month. B) 1.8 million gallons per month. C) 1.6 million gallons per month. D) 1.9 million gallons per month.
If buyers expect the price of a good to fall in the near future, we would expect that to cause the current price and the quantity traded to decrease as a result
a. True b. False Indicate whether the statement is true or false
If an economy has been operating below its potential output level,
a. frictional unemployment is too high b. more individuals should begin entering the labor force c. the government should create more jobs d. unemployment is likely rising. e. the production possibilities frontier will shift