If there are strong expectations of future economic growth, then the:
a. economy will move to the right along the existing consumption function.
b. economy will move to the left along the existing consumption function.
c. consumption function will shift downward.
d. consumption function will shift upward.
e. investment demand curve will shift upward.
e
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Find the real exchange rate for the following case: Assume that the representative basket of European goods costs 150 euros and the representative U.S
basket costs $90, and the dollar/euro exchange rate is $0.80 per euro, then the price of the European basket in terms of U.S. basket is:
Which of the following is the best example of "what goods and services should be produced?"
A) the use of a capital intensive versus a labor intensive process of manufacturing textiles B) the production of SUVs versus the production of sub-compact cars C) the manufacturing of computer workstations in China or in India D) the leasing versus the purchasing of new capital equipment
An inferior good is
a. any good whose demand curve shifts to the left as income rises b. any good of low quality c. one that has few substitutes d. any good produced by inexpensive labor e. any good that consumers buy less of as its price falls
Explain the behavioral and structural approaches to government antitrust policy. Identify one practical problem with each approach.
What will be an ideal response?