Evidence to support the Ricardo-Barro effect would show that
A) government budget deficits have no effect on the real interest rate or investment.
B) higher government budget surpluses decrease investment.
C) higher government budget deficits decrease investment.
D) higher government budget deficits raise the real interest rate.
E) government budget deficits increase household consumption.
A
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Assume that your nominal wage was fixed at $25 an hour, and the price of gasoline fell from $4.00 to $1.50. In this case, your real wage (in terms of gasoline) has
A. decreased to $6.25. B. increased to $10. C. decreased to $16.66. D. increased to $16.66.
Present bias implies that:
A) a consumer gives much more weight to the future than to the present. B) a consumer gives much more weight to the present than to the future. C) discount weights for delayed consumptions will always equal one. D) discount weights for delayed consumptions will always be greater than one.
A firm that practices resale price maintenance
a. has incentive to reduce competition between its retailers. Resale price maintenance can lead to more service. b. has incentive to reduce competition between its retailers. Resale price maintenance cannot lead to more service. c. has no incentive to reduce competition between its retailers. Resale price maintenance can lead to more service. d. has no incentive to reduce competition between its retailers. Resale price maintenance cannot lead to more service.
________: a market structure that has only one firm buying from sellers
Fill in the blank(s) with correct word