The more liquid markets are the:
A. higher the interest rates, and the lower the amount of investment.
B. higher the interest rates, and the higher the amount of investment.
C. lower the interest rates, and the lower the amount of investment.
D. lower the interest rates, and the higher the amount of investment.
Answer: D
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The observation that interest rates are higher in years ending with a 1 or a 6 represents causality rather than association
a. True b. False Indicate whether the statement is true or false
The money cost of a particular good will approximate its opportunity cost if
a. there are serious distortions in the market. b. the market functions well. c. there is much specialization in the market. d. nations are exploiting the law of comparative advantage.
When is a buyer NOT willing to spend a lot of time and energy researching the market?
a) when buying a large quantity of goods b) when there are many identical products available c) when the savings to be made are small d) when prices vary but quality is the same
A consumption tax would lead to an increase in the supply of loanable funds and a decrease in real interest rates
a. True b. False Indicate whether the statement is true or false