Suppose the saving rate is initially less than the golden rule saving rate. We know with certainty that a reduction in the saving rate will cause
A) a reduction in the capital labor ratio.
B) a reduction in output per worker.
C) a reduction in consumption per worker.
D) all of the above
E) none of the above
D
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Assume that tortilla chips and salsa are complements. When the price of tortilla chips decreases
A) the demand for salsa decreases. B) the supply of salsa decreases. C) the demand for salsa increases. D) the demand for tortilla chips decreases.
If there is an inflationary gap, what is the proper monetary policy to restore price stability? What actions can the Fed undertake to restore price stability?
What will be an ideal response?
What is an income statement?
What will be an ideal response?
Suppose the price of eggs decreases from $2 per egg to $1.50 per egg. Due to this decrease in price, the ____ will increase
a. producer surplus b. consumer surplus c. opportunity cost of producing an egg d. social marginal cost