Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000 . The saving rate is
a. higher in Aire than in Cartar, and it is higher in Cartar than in Bovina.
b. higher in Cartar than in Aire, and it is higher in Aire than in Bovina.
c. higher in Cartar than in Bovina, and it is the same in Bovina and Aire.
d. higher in Aire than in Bovina, and it is the same in Aire and Cartar.
a
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The government can aid in reducing pollution by using a policy of cap-and-trade, which means that
A) polluters are taxed on the amount of pollution they discharge. B) emission charges are established by the government. C) each polluter is assigned a pollution limit and is given tradable permits that allow this amount of pollution. D) only some producers pollute and the others go out of business.
If banks do not loan out all their excess reserves, then the real world multiplier is
A) not related to 1/RR. B) larger than 1/RR. C) smaller than 1/RR. D) equal to 1/RR.
________ is defined as first pricing below fair value to drive domestic firms from the market and then pricing as monopolists
A) Predatory subsidization B) Monopoly subsidization C) Predatory dumping D) Monopoly dumping
The market clearing price refers to the:
A. equilibrium price that quantity supplied is the highest possible. B. price where quantity demanded and quantity supplied are the same. C. minimum price at which items could be sold. D. maximum price where all suppliers are willing to sell all their production.