If Arnold has a positive rate of time preference, he desires to
a. save in case of inflation
b. consume now rather than later
c. invest in stocks and bonds
d. invest in education
e. plan for retirement
B
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Banks will be examined at least once a year and given a CAMELS rating by examiners. The L stands for
A) liabilities. B) liquidity. C) loans. D) leverage.
A decrease in autonomous consumption ________
A) lowers planned expenditures B) raises equilibrium output for any level of the interest rate C) causes a movement down along the IS curve D) all of the above E) none of the above
Harry's employer offers a "Holiday Account," which means they will take $50 a month out of Harry's paycheck and deposit it into this account throughout the year. In December, they give Harry the money in the account to spend during the holidays. Harry regularly carries about $200 of credit card debt each month. Harry's decision to set aside some of his money in this account is an example of:
A. ignoring the fungibility of money. B. recognizing that money is fungible. C. needing to categorize expenditures to make rational decisions about money. D. being rational.
Game theory may be used to solve problems of interdependent decision making by large firms
a. True b. False Indicate whether the statement is true or false