Jason has been holding his retirement savings in a safe in his house. Currently the economy is experiencing a falling price level. He can conclude that:
a. the real purchasing power of his money is remaining constant
b. the real value of his savings is increasing as long as the price level is falling.
c. the real value of his savings is decreasing as long as the price level is falling.
d. none of the above are true.
b
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Individuals tend to trade because
A) they place different values on their property. B) they expect to gain more than they give u
"Other things being equal, the monopolist hires fewer workers than would be hired than a perfectly competitive industry." Do you agree or disagree? Why?
What will be an ideal response?
Which of the following is true of an annually balanced federal budget? a. Most economists agree that the federal government should balance its budget just as each household does. b. Such a policy would require the government to increase its spending when tax receipts decrease
c. Such a policy became popular between the 1930s and 1960s. d. Such a policy guarantees that the economy is its potential level. e. Such a policy could worsen a contractionary gap.
Which is an important consequence of the public debt of the United States?
A. It will threaten to bankrupt the federal government. B. It leads to fewer incentives to bear risk and innovate. C. It decreases the inequality in the distribution of income in the United States. D. It transfers a portion of output from foreign nations to the United States.