When interest rates are free from central bank manipulation, and fall due to an increase in household savings, this
A) provides an incentive for government to create a budget surplus.
B) sends a "green light" signal for businesses to increase investment.
C) has little impact on the macroeconomy.
D) creates a "cluster of errors" and an inevitable recession.
B
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Distinguish the laws of demand and supply. How are the laws of demand and supply illustrated graphically?
After its reforms in the late 1970s, China followed a policy of
a. Nationalization of all enterprises b. export of technology c. free economic zones d. import substitution e. industrial planning
A corporation can elect to allocate corporate profits into either
A. Interest payments or dividends. B. Capital gains or dividends. C. Bonds or stocks. D. Dividends or retained earnings.
As used in the text, the "composite good" refers to:
a. large purchases that cannot be incrementally divided b. an abstraction requiring more than a three-dimensional graph c. income not spent on good X is two-dimensional graphical presentation d. the notion that consumers cannot be modeled graphically e. none of the above