As the interest rate increases, the opportunity cost of
a. both c and e are correct
b. past consumption decreases
c. saving increases
d. current consumption increases
e. borrowing decreases
D
You might also like to view...
In Econland autonomous consumption equals 700, the marginal propensity to consume equals 0.80, net taxes are fixed at 50, investment is fixed at 100, government purchases are fixed at 100, and net exports are fixed at 40. The slope of the aggregate expenditures model line is
A. 0.90. B. 0.80. C. 0.20. D. 0.99.
Progressive taxation serves which of the following goals of economic welfare policy?
A. Social insurance B. Economic growth C. Progressive taxation has all of these goals aimed at reducing inequality. D. Redistribution of wealth
An example of a final good is:
A. chocolate chips purchased by Nabisco to make Keebler chocolate chip cookies. B. chocolate chips purchased by you to make chocolate chip cookies. C. chocolate chips purchased by a restaurant to make a chocolate chip cookie pie to sell. D. chocolate used to make Cocoa Rice Krispies.
Which of the following would NOT be investment?
A. a baking company buying a new oven B. a car dealership adding to the number of cars it has to sell to its customers C. a just-completed home is sold to a household D. a household buing stock in a company