If we want to produce more capital goods during the present time period, we must
a. increase current consumption.
b. lower future consumption.
c. reduce current consumption.
d. reduce our savings rate.
C
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The "invisible hand" refers to the notion that
A) competitive markets send resources to their highest valued uses. B) government intervention is necessary to ensure efficiency. C) marginal benefit decreases as more is consumed. D) marginal cost increases as more is produced. E) no matter what allocation method is used, the resulting production is efficient.
A tax rebate, like the one issued in 2008, is likely to ________ consumption spending ________ than would a permanent tax cut
A) increase; more B) decrease; more C) increase; less D) decrease; less
If the price of bonds is set ________ the equilibrium price, the quantity of bonds demanded exceeds the quantity of bonds supplied, a condition called excess ________
A) above; demand B) above; supply C) below; demand D) below; supply
By Marks buys a one-year German government bond (called a bund) for $400. He receives principal and interest totaling $436 one year later
During the year the CPI rose from 150 to 162, but he had thought the CPI would be at 159 by the end of the year. By Marks had expected the real interest rate to be ________, but it actually turned out to be ________. A) 8%; 1% B) 6%; 3% C) 3%; 1% D) 1%; 3%