In a closed economy, what is the relationship between saving and investment?
A) Saving is greater than investment.
B) Investment may be greater or smaller than saving.
C) Investment is greater than saving.
D) Investment is equal to saving.
D
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Higher efficiency in the economy can be reached if prices are held low by law.
Answer the following statement true (T) or false (F)
Some luxury product manufacturers will purposefully raise prices on their goods in order to reduce sales volume. This strategy may successfully increase sales revenue if the luxury goods are subject to the ________ effect and have relatively ________ demand.
A. bandwagon; elastic B. snob; inelastic C. bandwagon; inelastic D. snob; elastic
An example of a public policy response to a monopoly is:
A. doing nothing. B. public ownership. C. antitrust laws. D. All of these are examples.
The Fed controls the money supply in the U.S. economy largely through its ability to influence bank reserves and the money creating power of commercial banks
a. True b. False Indicate whether the statement is true or false