According to classical theory, desired saving always equals investment due to changes in
A. the interest rate.
B. prices.
C. wages.
D. taxes.
Answer: A
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Does a subsidy to buyers affect the demand curve?
A. Yes, it shifts demand up by the amount of the subsidy. B. Yes, it shifts demand to the right by the amount of the subsidy. C. No, the quantity demanded will increase, but the demand curve does not move. D. No, the quantity demanded will decrease, but the demand curve does not move.
Does the amusement park Six Flags Over Texas, in Arlington, Texas, share a market with the Texas Rangers pro baseball team, also located in Arlington, Texas? And if so, which one? Explain
Price elasticity of demand is the
A. percentage change in quantity demanded divided by the percentage change in price. B. change in price divided by the change in quantity. C. percent change in price divided by the change in quantity. D. change in quantity divided by the change in price.
To maximize profits, the discriminating monopolist sells abroad rather than selling additional units at home because:
a. the home market is just too competitive. b. there would be more incentive for entry from other firms. c. the market price at home would rise and the firm would lose customers. d. it would lower total profits if it lowered its home price in order to sell the additional units.