The phenomenon that some consumers pay a higher interest rate when they borrow than the interest rate they receive when they lend is best described as an example of
A) irrational behavior.
B) a credit market imperfection.
C) a vast banking conspiracy.
D) the burden of public debt.
B
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An increase in the income tax rate ________ the value of the tax multiplier
A) decreases B) increases C) has no effect on D) may increase or decrease
An increase in the price of sodium carbonate, a chemical compound used in detergents, will:
a. increase the quantity of detergents demanded. b. decrease the quantity of detergents demanded. c. decrease the demand for detergents. d. increase the demand for detergents.
If a country imposes a tariff on imported shoes, we expect the domestic price of shoes to _______ and the quantity of shoes consumed in the domestic market to _______ .
A) fall; fall B) fall; rise C) rise; fall D) rise; rise
Two nations, ECON and OMICS, each produce goods A and B. The table gives points on each nation's production possibilities curve.ECONOMICSABAB08024162182441232664080For OMICS, the opportunity cost of producing an additional unit of A is
A. 1 unit of B. B. 2 units of B. C. 3 units of B. D. 4 units of B.