A decrease in the real interest rate acts as ________ for lenders and as ________ for borrowers
A) an increase in wealth; an increase in wealth
B) an increase in wealth; a decrease in wealth
C) a decrease in wealth; an increase in wealth
D) a decrease in wealth; a decrease in wealth
C
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The above table gives some of Tammy's total and marginal utilities from comedy videos. Which of the following statements is TRUE?
A) Tammy's marginal utility from the third comedy video is equal to 580/3. B) Tammy's total utility from five comedy videos is 800. C) Tammy's marginal utility from the first comedy video is less than her marginal utility from the third comedy video. D) None of the above answers are correct.
Which of the following are positive economic statements and which are normative economic statements?
a. An increase in the minimum wage causes unemployment. b. The government should raise the minimum wage above $7.25 per hour. c. The prolonged recession has caused the unemployment rate to reach a 30-year high. d. Interest rates need to be lower for the economy to emerge from the recession. e. Inflation has decreased since the onset of the recession. f. Once the recession has ended, interest rates should increase to assure that inflation does not go up.
An increase in demand and an increase in supply will lead to
A) unambiguous increases in both price and quantity. B) unambiguous decreases in both price and quantity. C) an unambiguous increase in quantity, but the effect on price is indeterminate. D) an unambiguous increase in price, but the effect on quantity is indeterminate.
The market interest rate is important to the investment decision of firms: a. only when funds are borrowed from financial intermediaries. b. only when firms have the money to invest in capital. c. regardless of whether funds must be borrowed or firms have the funds on hand. d. only when firms have funds on hand and are ready to lend them
e. only when firms purchase new equipment rather than a new building.