Saving by households
A) decreases when the real interest rate rises.
B) increases when the real interest rate rises.
C) increases when the real interest rate falls.
D) is unaffected by the real interest rate.
B
You might also like to view...
A reason why a firm's demand for labor curve slopes downward is that, holding everything else constant,
A) the extra cost of hiring additional units of labor increases as a firm hires more units of labor. B) as more labor is hired, labor's marginal product falls due to diminishing marginal returns. C) the firm's demand curve for the product produced by the labor is downward sloping. D) each additional unit of labor hired is less efficient than previously hired units.
Economists argue that unhindered international trade leads to an efficient outcome. What is meant by "an efficient outcome" in this context?
A) an outcome in which wages are roughly equal around the world B) an outcome in which the standard of living is roughly equal around the world C) an outcome in which an individual can choose to specialize in a certain line of work and be certain that he or she can make a living at that until retirement D) an outcome in which resources are devoted to their most efficient use
The relationship according to which the perceived change in any stimulus varies according to the size of the change measured as a proportion of the original stimulus is known as:
A. the Weber-Fechner law. B. the representative heuristic. C. status quo bias. D. regression to the mean.
The cost of inflation to society includesI.The opportunity costs of resources used by people to protect themselves against inflationII.The costs associated with recalculating prices
A. I only B. II only C. Both I and II D. Neither I nor II