Refer to the following indifference map for a consumer who has an income of $48 to spend on goods X and Y and the market prices of X and Y are both $4:
After the price of good X increases to $12 while the price of good Y remains $4, how many units of good X would be purchased?
A. 0
B. 2
C. 4
D. 8
E. 12
Answer: A
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Your text considers both the low savings and high savings nations and concludes what about the relationship between government budgets and the current account?
What will be an ideal response?
Who benefits from a higher than expected inflation rate?
a. Lenders and workers. b. Lenders and businesses. c. Borrowers and workers. d. Borrowers and businesses. e. None of the above.
The Federal Reserve Bank attempted to deal with the sluggish aggregate demand that followed the housing market crash and subsequent financial crisis through:
A. contractionary fiscal policy. B. contractionary monetary policy. C. expansionary monetary policy. D. expansionary fiscal policy.
Accounting profits are typically
A) greater than economic profits because accounting profits do not include explicit costs. B) greater than economic profits because accounting profits do not include implicit costs. C) smaller than economic profits because accounting profits do not include explicit costs. D) equal to economic profits in the long run.