In the classical model, changes in interest rates will always ensure that
A) consumption equals production.
B) saving equals investment.
C) consumption equals investment.
D) consumption equals income.
B
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The Sarbanes-Oxley Act of 2002
A) requires that CEO's personally certify the accuracy of financial statements. B) mandates that firms raise funds for expansion only through the sale of stock or from bank loans, but not from the sale of corporate bonds. C) created the Consumer Financial Protection Bureau to be housed in the Federal Reserve. D) established the Financial Stability Oversight Council to identify risks to the financial system.
According to the liquidity premium theory, what does a flat yield curve indicate?
A) Short-term interest rates are expected to remain stable. B) Short-term interest rates are expected to rise. C) Short-term interest rates are expected to fall. D) Long-term interest rates are expected to fall.
The intersection of a firm's marginal revenue and marginal cost curves determines the level of output at which
a. total revenue is equal to variable cost. b. total revenue is equal to fixed cost. c. total revenue is equal to total cost. d. profit is maximized.
As noted in the text, which of the following was used by Nintendo to control the video game market?
A.) A natural monopoly. B.) Economies of scale. C.) A government franchise. D.) Exclusive licensing