Other things constant, when households decide to save more, the supply of credit rises, interest rates ________ and business investment ________
A) rise; rises
B) rise; falls
C) fall; rises
D) fall; falls
C
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Consider an industry that produces an output Q with marginal private cost (MC) and marginal social cost (MSC) as given in the table:
Q MC MSC 1 2 4 2 4 7 3 6 10 4 8 13 5 10 16 Which of the following is TRUE? A) The production of each additional unit results in a larger marginal external cost. B) The production of each additional unit results in the same marginal external cost. C) The production of each additional unit results in a lower marginal external cost. D) There are no marginal external costs associated with the production of this good.
In 2014, China had accumulated $3.8 trillion worth of reserve assets. These $3.8 trillion entered into China's balance of payments in the:
a. Trade balance. b. Balance on goods and services. c. Financial Account. d. The total amount did not enter into China's balance of payments. Only changes enter the balance of payments.
The notion that similar taxpayers should pay similar amounts of taxes is known as
a. vertical equity. b. the benefits principle. c. horizontal equity. d. taxpayer efficiency.
The short run is best defined as:
A. one year or less. B. a period of time sufficiently short that all factors of production are variable. C. a period of time sufficiently short that at least one factor of production is fixed. D. the period of time between quarterly accounting reports.