A rise in the interest rate will generally result in people consuming less when they are old if the substitution effect outweighs the income effect
a. True
b. False
Indicate whether the statement is true or false
False
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When taxes are cut, aggregate demand ________ and aggregate supply ________
A) decreases; increases B) increases; increases C) increases; does not change D) increases; decreases E) decreases; decreases
In Argentina, agricultural production is directly related to
A) government subsidies. B) price controls. C) import tariffs. D) well-defined property rights..
As new firms enter an existing industry, it can be expected that the
a. market price will increase b. output of existing firms will increase c. profit of existing firms will increase d. market demand should decrease e. profit of existing firms will decrease
Which is not true regarding a delayed-compensation contract?
A. It discourages workers from shirking. B. An effective one requires a mandatory retirement age. C. It necessarily costs more in labor costs than a time rate system. D. It is associated with an upward-sloping age-earnings profile. E. It decreases employee turnover within the firm.