In an economy where net exports are zero, if saving rises in some period, then in that period
a. consumption and investment fall.
b. consumption falls and investment rises.
c. consumption rises and investment falls.
d. consumption rises and investment falls.
b
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In the absence of financial frictions, ________
A) interest rates for different borrowers move closely together B) all loans in the economy are transacted at a common interest rate C) the level of output is not affected by changes in the real interest rate D) an increase in inflation leads to a decrease in the real interest rate
Innovations that generate profit for a firm's owners include developing
a. both c and d b. all of the following c. markets in new locations d. new products e. new production processes and distribution methods
Randolph is taking three courses this semester: economics, statistics, and finance. He has decided to spend 20 hours per week studying (in addition to attending all his classes) and his objective is to maximize his average grade, which means maximizing the total of his grades in the three courses. The table shows Randolph's estimate of the relation between time spend studying and his grade for each course.
Based on the above info, what is the maximum AVERAGE grade Randolph can earn if he studies 20 hours per week?
A. 80.3 B. 80 C. 82 D. 81.7
In which of the following situations is a budget surplus most likely to occur?
A. When fiscal policy is expansionary B. When fiscal policy is expansionary and the economy is contracting C. When the economy is contracting D. When fiscal policy is contractionary and the economy is expanding