To the extent that households are target savers who save to reach a specific goal, an increase in the interest rate ________ household saving and a decrease in the interest rate ________ household saving.
A. decreases; increases
B. increases; decreases
C. increases; does not affect
D. does not affect; increases
Answer: A
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The city of Hope has a labor force of 1000. Twenty people lose their jobs each month and remain unemployed for exactly one month before finding jobs
On January 1, May 1, and September 1 of each year, 50 people lose their jobs for a period of four months before finding new jobs. What is the unemployment rate in any given month? A) 2% B) 3% C) 5% D) 7%
which shows the production possibilities frontier for mufflers and socks. The opportunity cost of moving from point b to d is _____
a. equal to 30 mufflers. b. equal to 50 mufflers. c. equal to 100 socks. d. equal to 150 socks. e. equal to 250 socks.
For a given level of inflation, if bright prospects for the future of the economy cause businesses to increase their investment in new capital, then the ________ shifts ________.
A. aggregate demand curve; left B. short-run aggregate supply line; downward C. aggregate demand curve; right D. short-run aggregate supply line; upward
Consider the following:
The relative price of hamburgers this year has
A. increased. B. decreased. C. stayed the same. D. Not enough information has been given to calculate an answer.