The demand for new capital depends on the interest rate.
Answer the following statement true (T) or false (F)
True
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The equilibrium quantity will decrease and the price might rise, fall, or stay the same when the
A) demand and the supply of a good both increase. B) demand for a good increases and the supply of it decreases. C) demand for a good decreases and the supply of it increases. D) demand and the supply of a good both decrease.
A government is thinking about increasing the sales tax rate. Should it use static or dynamic tax analysis? Explain why one approach is better than the other
What will be an ideal response?
The Save More Tomorrow (SMarT) program found all of the following except that:
A. people want to save more than they typically do. B. participants quadrupled their savings in just a couple of years. C. if the default choice is to save a portion of income, people will save more. D. people were already saving at an optimal amount, so the program had no effect.
Explain how microeconomics is different from macroeconomics.
What will be an ideal response?