When the public expects inflation, real and nominal rates of interest will be the same.
Answer the following statement true (T) or false (F)
False
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According to the Law of Diminishing Marginal Returns, as additional units of one input are employed as all other inputs are held constant, total output will eventually ______.
A. decrease B. increase at an increasing rate C. increase at a decreasing rate D. increase at a constant rate
It is likely that a small increase in a country's saving rate will have
A. a large effect on per capita real GDP immediately because the increase in saving leads to a much larger rate of economic growth. B. a small effect on per capita real GDP many years later because the increase in saving will have very little effect on the growth rate. C. a large effect on per capita real GDP many years later because the increase in saving leads to a slightly higher rate of economic growth which has large effects over time. D. a small effect on per capita real GDP many years later because the increase in saving will be offset in later years by a decrease in the saving rate.
Use the following table to answer the question below. Cloe is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents each and hard candies cost 80 cents each. The marginal utilities derived from the consumption of each product are as shown in the following table.Number of ItemsMarginal Utility of ChocolatesMarginal Utility of Hard Candies160150250140340120430100520806107075508020If Cloe buys either chocolates or hard candies one piece at a time, what will be her first two purchases?
A. a chocolate, followed by another chocolate B. a hard candy, followed by another hard candy C. a hard candy, followed by a chocolate D. a chocolate, followed by a hard candy
The slope of a straight line increases as the numbers on the x-axis become larger
Indicate whether the statement is true or false