Which of the following events could explain an increase in interest rates together with a decrease in investment?
a. The government budget went from surplus to deficit.
b. The government instituted an investment tax credit.
c. The government reduced the tax rate on savings.
d. None of the above is correct.
a
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Compared to the situation before international trade, after the United States imports a good production in the United States ________ and consumption in the United States ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
The current account records all transactions below EXCEPT for
A) net exports of goods and services. B) net interest income. C) net foreign investment. D) net transfers.
Refer to Figure 4-3. At the equilibrium price of P1, consumers are willing to buy Q1 pounds of granola. Is this an economically efficient quantity?
A) Yes, because marginal cost is zero at the price of P1. B) No, the marginal cost of the last unit (Q1 ) exceeds the marginal benefit of the last unit. C) Yes, because P1 is the price where marginal benefit equals marginal cost. D) No, the marginal benefit of the last unit (Q1 ) exceeds the marginal cost of that last unit.
Refer to Figure 13-4. What is the area that represents the total revenue made by the firm?
A) 0P0aQa B) 0P2cQa C) 0P1bQa D) 0P3dQa