Suppose there is an increase in the confidence that workers have in their future employment and income. This will cause
A. an increase in borrowing, which will increase interest rates.
B. an increase in saving, which will decrease interest rates.
C. an increase in borrowing, which will decrease interest rates.
D. an increase in saving, which will increase interest rates.
Answer: A
You might also like to view...
Wealth increases as a result of ________ and/or ________.
A. positive saving; crowding out B. positive saving; capital gains C. positive saving; capital losses D. negative saving (borrowing); capital gains
Given the information above, the demand is
a. unitary. b. indeterminate. c. elastic. d. inelastic.
If the short run elasticity of demand for widgets is 0.7 and the long run elasticity of demand for widgets is 1.5, a decrease in price will ____ total revenue in the short run and ____ total revenue in the long run. a. Increase; increase
b. Increase; decrease. c. Decrease; increase. d. Decrease; decrease.
The average total cost of production is measured by
a. average variable cost + average fixed cost b. fixed cost + variable cost c. average variable cost – average fixed cost d. marginal cost + variable cost e. fixed cost + marginal cost