Higher savings usually requires higher interest rates because:
A. higher savings means we expect interest rates to decrease.
B. everyone prefers to save more instead of consuming.
C. saving requires sacrifice and people must be compensated for this sacrifice.
D. of the rule of 72.
Answer: C
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Suppose the price level increases and real GDP remains the same. Then
A) nominal GDP must decrease. B) nominal GDP must remain unchanged. C) nominal GDP must increase. D) none of the above are true.
In the long run, a typical perfectly competitive firm will produce at the minimum point of its long-run average total cost curve and the minimum point of its short-run average total cost curve
a. True b. False
One of the virtues of rising resource prices is they encourage innovation, especially the discovery of other more abundant resources
a. True b. False Indicate whether the statement is true or false
In a perfectly competitive world:
A) two-way trade would not occur. B) one-way trade would not occur. C) neither one-way trade nor two-trade would occur. D) both one-way trade and two-way trade would occur.