What is the problem with saving in DVCs, even when saving as a percentage of domestic output is the same as in industrially advanced countries?
A. The interest rate paid on money kept in a bank in DVCs is not as high as the interest rate on money kept in a bank in an IAC
B. Capital flight reduces investment opportunities and the need for saving in DVCs
C. There is a continual brain drain that removes skilled labor from the work force and reduces labor productivity and the need for saving
D. The domestic output of DVCs is so low that the absolute volume of saving is small
D. The domestic output of DVCs is so low that the absolute volume of saving is small
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Fiscal policy cannot be used to move the economy along the short-run Phillips curve
a. True b. False Indicate whether the statement is true or false
If households' income taxes are cut, how are households likely to respond?
A decrease in consumption expenditure A decrease in saving Push the economy into recession An increase in consumption expenditure
The average total cost (ATC) curve will be downward sloping so long as
A. Average variable cost is less than average total cost. B. Marginal cost is less than average total cost. C. Average fixed cost is less than average total cost. D. Marginal cost is greater than average total cost.
Suppose consumers save 5 percent of their incomes. If the government collects 100 dollars in taxes from each taxpayer, private saving will ________ per taxpayer.
A. increase by $105 B. decrease by $95 C. decrease by $5 D. decrease by 95 cents