List four reasons why people save
What will be an ideal response?
a. First, and foremost, people save for consumption after retirement.
b. People save to cope with possible emergencies or shortages of funds in the future.
c. People save to buy durable goods.
d. People save so that they can invest in a personal business.
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If Md = 2,600 – 200r, the MPC = .75, G=100, and T = 100 . If the central bank wants the interest rate to be r=2, then the money supply must be
a. 5. b. 400 c. 300 d. 3,000 e. not enough information was given.
Assuming a flexible exchange rate, then an expansionary monetary policy in the foreign exchange market will shift
a. the demand curve for foreign exchange to the right b. the demand curve for foreign exchange to the right and the supply curve of foreign exchange to the left. c. both the demand curve for foreign exchange and the supply curve of foreign exchange to the right. d. both the demand curve for foreign exchange to the left. e. none of the above.
A 10 percent increase in the price of tablets leads to a 10 percent decrease in the quantity demanded of tablets. The absolute price elasticity of demand for tablets is
A) 3. B) 0.3. C) 1. D) 10.
In which of the following countries has economic growth been sufficiently high that income would double every ten years?
a. India b. Mexico c. South Korea d. Zimbabwe