The higher is the current level of saving:
A) the higher is the current level of investment and lower the future level of consumption.
B)the lower is the current level of investment and lower the future level of consumption.
C) the lower is the current level of investment and higher the future level of consumption.
D) the higher is the current level of investment and higher the future level of consumption
D) the higher is the current level of investment and higher the future level of consumption
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Suppose the market price is $5, marginal cost is $4, and average total cost is $2. The perfectly competitive firm in that market is
A) earning $3 in economic profits per unit of output and is not maximizing profits. B) earning $2 in economic profits per unit of output and is maximizing profits. C) earning $1 in economic profits per unit of output and is not maximizing profits. D) none of the above: Insufficient information is given.
Suppose a country experiences capital flight. Of the demand for loanable funds and the supply of currency in the market for foreign-currency exchange, which shifts right?
a. only the demand for loanable funds b. only the supply of its currency in the market for foreign-currency exchange c. both curves shift right d. neither curve shifts right
Which of the following fiscal policy actions would be appropriate if the economy is experiencing an inflationary gap?
A. an increase in taxes B. an increase in government spending C. an increase in the money supply D. a decrease in interest rates
Which of the following is an example of internalizing an externality?
A) a paper mill that spends money removing the pollution it generated B) a neighbor leaving lots of trash in his front yard C) a student receives $15 for each bright question asked during lecture D) Both A and C.