Any change in the economy that reduces desired national saving for a given value of the real interest rate will shift the desired national saving curve to
A. the right and decrease the real interest rate.
B. the left and increase the real interest rate.
C. the left and decrease the real interest rate.
D. the right and increase the real interest rate.
Answer: B
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If a country's government reduced corruption and reformed its tax system so that businesses found operating there less risky, it's likely that this country's
a. net exports and net capital outflows would increase. b. net exports would increase and its net capital outflows would decrease. c. net exports and net capital outflow would decrease. d. net exports would decrease and its net capital outflow would increase.
If income rises from 6.0 trillion to 6.4 trillion, consumption rises from 5.5 trillion to 5.8 trillion. What is the slope of the aggregate expenditure line? (Assume there is neither international trade nor any government)
What will be an ideal response?
Which of the expressions below best describes the aim of economic theory?
A) to predict how people think about money B) to understand why money motivates some people more than others C) to predict the choices people will make D) to learn what we can do to prevent people from having unrealistic wants
If the four firms in an industry represented 40%, 30%, 20%, and 10% of the market, respectively, what would be the Herfindahl-Hirschman Index for this industry? What if the largest firm then divested into two equal sized companies?
a. 3,000 . 2,300. b. 2,300; 3,000 c. 3,000 . 5,400 d. 2,300; 5,400