Which of the following is true?
a. if an investment project is going to be undertaken, someone must increase his current consumption.
b. saving and investment must always be undertaken by different individuals.
c. if we invest more and use more of our resources to produce capital goods today, fewer current resources will be available to produce consumption goods.
d. all of the above are correct.
C
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The Car Allowance Rebate System (CARS)
a. was launched as a stimulus program by the Reagan administration b. was introduced under the Consumer Assistance to Recycle and Save Act of 2009 c. is currently available to purchasers of plug-in hybrids d. was the first-ever Vehicle Accelerated Vehicles Retirement (VAVR) program
Suppose the central bank announces that it will permanently increase the inflation rate and there is central bank credibility
With adaptive expectations, expectations of inflation will adjust ________, and with rational expectations, expectations of inflation adjust ________. A) slowly; slowly B) slowly; immediately C) immediately; immediately D) immediately; slowly
If the required reserve ratio is 20 percent and a bank has $100,000 in checkable deposits, then its: a. required reserves are $500,000. b. required reserves are $20,000. c. assets are $500,000
d. liabilities are $500,000. e. net worth is $500,000.
A monopoly has two production plants with cost functions C1 = 50 + 0.1Q12 and C2 = 30 + 0.05Q22. The demand it faces is Q = 500 ? 10P. What is the profit-maximizing level of output?
A. Q1 = Q2 = 62.5. B. Q1 = Q2 = 125. C. Q1 = 62.5; Q2 = 125. D. Q1 = 125; Q2 = 62.5.