When real rates of interest are positive, it is better to be a:
A. borrower than a saver, because the value of savings and debts are increasing.
B. saver than a borrower, because the value of savings and debts are increasing.
C. borrower than a saver, because the value of savings and debts are decreasing.
D. saver than a borrower, because the value of savings and debts are decreasing.
Answer: B
You might also like to view...
A firm is considering entering a market where demand for its product is Q = 100 - P. This demand function implies that the firm’s marginal revenue function is MR = 100 - 2Q. The firm’s total cost of producing the product for that market is TC = 500 + 10Q + Q2 which indicates that its marginal cost function is MC = 10 + Q. Indicate whether or not the firm should enter the market by calculating the firm’s profit (Hint: to find the price that the firm should charge, take the profit maximizing quantity and plug it into the demand equation). Describe how your previous answer would change if the firm’s total cost function became TC = 1000 + 10Q + Q2.
What will be an ideal response?
Cigarettes served as money in some prisoner of war (POW) camps during World War II. Given this, we would expect to observe
A) no one ever smoking a cigarette. B) prices of other goods expressed in terms of cigarettes. C) only government-issued cigarettes being accepted as money. D) people usually resorting to barter rather than using cigarettes as money.
Which of the following is not a form of capital?
a. loanable funds b. John Deere farm machinery c. sourdough used to make bread d. sourdough bread on your Thanksgiving dinner table e. sourdough bread used to make a tuna sandwich at Timpone's restaurant
Productivity levels are higher in rich countries compared to poor countries
a. True b. False Indicate whether the statement is true or false