As the interest rate increases, consumers will tend to increase their amount of saving due to
a. increased profit
b. their greater reliance on borrowing
c. the lower opportunity cost of current consumption
d. diminishing marginal utility
e. the higher opportunity cost of current consumption
E
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Suppose the production of paved roadways can be represented as q = L0.5 + K0.5. Which of the following statements is (are) TRUE?
A) Labor is subject to diminishing marginal productivity in the short run. B) Labor and capital are imperfect substitutes. C) The isoquants for paved roadways are convex. D) All of the above.
In recent years, net interest on the national debt paid by the federal government as a percentage of GDP is equal to approximately:
a. 1 percent. b. 25 percent. c. 6 percent. d. 3 percent.
What is the percentage of income received by the lower three quintiles on line K?
Between 1950 and 2012, U.S. real GDP grew at an average annual rate of about:
A. 2.0 percent. B. 3.1 percent. C. 5.1 percent. D. 8.6 percent.