If the market interest rate increases, then
a. the cost of borrowing increases and so saving falls
b. the opportunity cost of consuming a good in the future increases and saving, therefore, increases
c. the opportunity cost of consuming a good in the future increases and saving, therefore, falls
d. the reward for saving diminishes and so present consumption increases
e. the reward for saving increases and so saving increases
E
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If net exports increases, but neither government expenditure nor net taxes change, saving must increase
Indicate whether the statement is true or false
Whether one views the discretionary policies of the 1960s and 1970s as destabilizing or believes the economy would have been less stable without these policies, most economists agree that
A) stabilization policies proved more difficult in practice than many economists had expected. B) stabilization policies proved not to be inflationary. C) the nondiscretionary policymakers were right in believing that the private economy is inherently stable. D) the discretionary policymakers were right in believing that the private economy is inherently stable.
The Augmented Dickey Fuller (ADF) t-statistic
A) has a normal distribution in large samples. B) has the identical distribution whether or not a trend is included or not. C) is a two-sided test. D) is an extension of the Dickey-Fuller test when the underlying model is AR(p) rather than AR(1).
Which of the following is true of efficiency wages? a. It encourages workers to enroll in training programs. b. It creates less worker turnover
c. It reduces the marginal productivity of workers. d. It increases workers' demand for leisure.