The average person in Country X spends almost all of their income, rather than save it. How will this dynamic most likely impact the country’s economic growth?
a. Not saving for the future will hinder economic growth.
b. The spending will drive rapid economic growth.
c. It will have little impact on growth.
d. It will slow growth in the short term but boost it in the long term.
a. Not saving for the future will hinder economic growth.
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In the classical model the interest rate is determined by
a. real investment demand. b. real saving. c. government spending. d. tax revenues. e. all of the above.
Which of the following statements is true?
a. b and d. b. Total revenue is maximized when elasticity is one. c. Goods are said to be price inelastic when the elasticity is greater than two. d. Demand for milk is more elastic than demand for football tickets. e. Demand for 5-cent candy is more elastic than demand for sweaters.
If net taxes decrease, which of the following would occur?
a. Disposable income decreases, consumption at any income level increases, and the consumption-income line shifts upward. b. Disposable income increases, consumption at any income level increases, and the consumption-income line shifts downward. c. Disposable income increases, consumption at any income level increases, and the consumption-income line shifts upward. d. Disposable income decreases, consumption at any income level decreases, and the consumption-income line shifts downward. e. Disposable income increases, consumption at any income level decreases, and the consumption-income line shifts downward.
Beer and wine were difficult to find during the prohibition on alcohol, but whisky and gin were plentiful. Why?
What will be an ideal response?