According to the permanent income hypothesis, when income rises above the permanent income level, the household saves at a lower rate than the long-run MPS
a. True
b. False
Indicate whether the statement is true or false
False
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An appreciation of the U.S. dollar relative to the Japanese yen causes
A) a lower dollar-price of Japanese goods which induces the U.S. to increase their purchasing of Japanese goods. B) the quantity demanded of U.S. dollars to increase because the Japanese want to buy more U.S. goods. C) the Japanese to buy more U.S. goods, causing the dollars to appreciate further. D) the U.S. to buy less Japanese goods, causing the U.S. to depreciate.
Considering the information in the table shown, the price of ice cream is:
This table shows the different combinations of goods that Jack can consume, given that his income to spend on these two items is $10.
A. $2 per cone.
B. $1 per cone.
C. diminishing as Jack increases the amount consumed.
D. $5 per cone.
If a larger percentage of Americans attended college, the wage premium would probably
a. continue rising. b. continue falling. c. rise. d. fall.
A decrease in crime would be reflected in a country's GDP.
Answer the following statement true (T) or false (F)