Maryanne expects to work for another 30 years and expects to live another 10 years after she retires. If Maryanne completely smooths consumption over her lifetime, for every $1,000 increase in wealth, she will use ________ for consumption each year
A) $10.00
B) $25.00
C) $100
D) $333
B
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Which of the following is false? a. Market prices signal the relative availability of products to buyers
b. Market prices signal the relative value consumers place on products to sellers. c. The information and incentives offered by market price adjustments provide the "invisible hand" toward socially desirable cooperation between consumers and producers. d. None of the above are false; all are true.
Foreign direct investment that takes the form of a new startup facility is called:
a. acquisition FDI. b. greenfield FDI. c. intermediary FDI. d. brownfield FDI.
The existing tax rates on income in the United States:
A. curtail spending slightly when incomes rise because people have to pay more in taxes when incomes are high. B. act as an automatic stabilizer. C. encourage spending slightly when incomes fall because people pay less in taxes when incomes are low. D. All of these are true.