In Figure 3-5 above, saving is zero at
A) point J.
B) point K.
C) point L.
D) none of the above because saving is never equal to zero under the conditions described in the graph.
B
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A Nash equilibrium occurs when each player in a game takes the ________ given the action of the other player
A) worst possible action for himself or herself B) best possible action for himself or herself C) most unpredictable possible action D) most mutually beneficial possible action E) best possible action for the other player
During the Clinton administration,
a. government savings rose significantly. b. total savings savings rose significantly. c. private savings rose because an increase in the tax rates on upper-income Americans and more government regulation d. both b and c.
According to Arthur Schlesinger, Jr., government spending
a. may grow more slowly during conservative periods, but will never contract. b. follows a natural cycle of increases during liberal periods and decreases during conservative periods. c. grows at the same rate under both liberal and conservative leadership; only the distribution (defense v. civilian) of the spending changes. d. reflects attempts by political leaders to reject the dominant political ideology of their youth.
Suppose you have put $5,000 into a project that should generate cash inflows of $1,250 for each of the next 5 years. If the interest rate is 8% is this a good investment?
A. Yes, because you will earn a profit of $1,250 dollars in 5 years B. Yes, because the internal rate of return is higher than the interest rate C. No, because the internal rate of return is higher than the interest rate D. No, because the net present value is negative