Higher interest rates as a result of deficit spending:
A. increase the wealth of future generations.
B. crowd out private investment.
C. ultimately has a positive impact on productivity gains and? society's standard of living.
D. raise growth in investment spending.
C. ultimately have a positive impact on productivity gains and? society's standard of living.
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Keynes's liquidity preference theory indicates that the demand for money
A) is purely a function of income, and interest rates have no effect on the demand for money. B) is purely a function of interest rates, and income has no effect on the demand for money. C) is a function of both income and interest rates. D) is a function of both government spending and income.
A local restaurant offers an "all you can eat" Sunday brunch for $12. Jenica eats two servings but leaves half of a third helping uneaten. Why?
a. Her marginal value of brunch has fallen below $12. b. Her marginal value of additional food has fallen below $4 ($12 divided by 3 servings). c. Her marginal value of an additional bite of food has fallen to zero. d. The total value she places on brunch today exactly equals $12.
The CPI in 1990 was 131, and the CPI in 2010 was 218. If you earned a salary of $40,000 in 1990, what would be a salary with equivalent purchasing power in 2010?
A) $45,977 B) $66,565 C) $87,200 D) $143,486
Refer to Figure 5-7. The marginal benefit of reducing pollution curve is the same curve as
A) the supply of pollution reduction curve. B) the demand for pollution reduction curve. C) the external benefit curve. D) the positive externality curve.