When tastes over current and future consumption take the Cobb-Douglas form, interest rates have no impact on savings when income is earned in the current period but not in the future.
Answer the following statement true (T) or false (F)
True
Rationale: For Cobb-Douglas tastes, the substitution and wealth effects are exactly offsetting.
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Discuss the advantages of the Herfindahl-Hirschman Index compared with the four-firm concentration ratio.
What will be an ideal response?
The number of corn producers increases, so the supply of corn ________ and the supply curve of corn ________
A) increases; does not shift B) increases; shifts rightward C) decreases; shifts leftward D) increases; shifts leftward E) decrease; shifts rightward
Refer to Table 6-3. Over what range of prices is the demand elastic?
A) between $8 and $16 B) between $14 and $16 C) over the entire range of prices D) between $2 and $8
In Figure 3-4 above, the shift from Ap0 to Ap1 could have been caused by a ________ in T of ________
A) fall, 300 B) fall, 180 C) fall, 500 D) rise, 300 E) rise, 500