If the people of a country are expecting an increase in the rate of economic growth, they will increase their rate of saving
a. True
b. False
Indicate whether the statement is true or false
False
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If the production possibilities frontier is a straight line, then the
A. opportunity cost of producing one good is zero. B. society is capable of producing only one of the goods and not the other. C. producer can produce more of both goods simultaneously. D. law of constant opportunity costs applies.
What happens to the output gap, the real interest rate, and net capital flows with the occurrence of each of the following events? Assume that exchange rates are flexible
a. The Federal Reserve increases the money supply. b. U.S. net exports decrease due to a decrease in incomes in Canada. c. Consumers decide to save more and spend less. d. Expected profits from newly-built factories in the United States decrease.
Minimax Motors, a car manufacturer, can produce 1,200 cars per week in its new plant that has 25 assembly lines and 450 workers. If Minimax Motors adds 50 new workers to their plant, it can produce 1,300 cars per week. This decrease in average productivity occurs because of: a. diminishing marginal returns of workers
b. diminishing marginal returns of assembly lines. c. diminishing marginal returns of both workers and assembly lines. d. diminishing marginal returns of the management team.
"Now that Blake paints the broad surfaces and I do the trim work, we can paint a house in three-fourths the time that it took for each of us to do both." This statement most clearly reflects
What will be an ideal response?