Refer to the information provided in Figure 23.1 below to answer the question(s) that follow.
Figure 23.1Refer to Figure 23.1. At income level ________, this household's saving is greater than zero and this household's consumption is greater than zero.
A. -$200
B. $800
C. $1,000
D. $1,500
Answer: D
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An unplanned decrease in inventories results in
A) actual investment that is greater than planned investment. B) an increase in planned investment. C) actual investment that is less than planned investment. D) a decrease in planned investment.
One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it was the result of the time needed to adapt to new technology. This explanation would require that
A) workers withdraw from the labor force to learn about the new technology. B) a large number of new entrants be attracted to the labor force. C) managers be reluctant to adopt changes. D) workers time at their jobs be diverted from production to learning the technology.
Which of the following represents the largest source of income for U.S. households?
a. personal interest b. proprietor's income c. wages and salaries d. rental income e. transfer payments
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and current international transactions balance in the context of the Three-Sector-Model? a. The real risk-free interest rate falls and current
international transactions balance becomes more negative (or less positive). b. The real risk-free interest rate rises and current international transactions balance becomes more negative (or less positive). c. The real risk-free interest rate and current international transactions balance remain the same. d. The real risk-free interest rate rises and current international transactions balance remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.