The paradox of thrift refers to the idea that
A. people who save are usually those who cannot afford it.
B. as people become more thrifty, incomes may fall.
C. the thrift industry (banks and savings and loans) wants some people to save so that others may borrow.
D. saving is necessary for economic development.
B. as people become more thrifty, incomes may fall.
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An increase in labor hours will lead to
A) a shift of the aggregate production function but no movement along it. B) a movement along the aggregate production function but no shift in it. C) both a movement along and a shift in the aggregate production function. D) neither a movement along nor a shift in the aggregate production function.
The rules established under the General Agreement on Tariffs and Trade (GATT) are enforced by an international body called the World Trade Organization (WTO)
a. True b. False Indicate whether the statement is true or false
Other things the same, a decrease in the price level causes real wealth to
a. fall, interest rates to fall, and the dollar to appreciate. b. fall, interest rates to rise, and the dollar to depreciate. c. rise, interest rates to rise, and the dollar to appreciate. d. rise, interest rates to fall, and the dollar to depreciate.
In an open economy, the domestic real interest rate is determined by:
A. domestic investment. B. domestic saving and net capital inflows. C. domestic saving and domestic investment. D. domestic saving, domestic investment, and net capital inflows.