A higher real interest rate ________ investment spending and ________ consumption spending.
A. decreases; decreases
B. decreases; increases
C. increases; decreases
D. increases; increases
Answer: A
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Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year. Last year, Christine's accounting profit was ________ and her economic profit was ________.
A. $64,000; $49,000 B. $100,000; $64,000 C. $9,000; 0 D. $49,000; $9,000
If the cost of capital increases the isocost line will
A) stay the same. B) shift outward in parallel fashion. C) rotate inward around the point where only labor is employed in production. D) shift inward in parallel fashion.
If a pair-wise majority vote was held, the voters' preferences are shown in the table, and Bob is setting the agenda for votes, which pair will he put up for vote first?
A. Public zoo and public parks
B. Public transportation and public zoo
C. Public parks and transportation
D. It will not matter, as it will not affect the outcome of the voting.
The owner of a call option can buy a futures contract at the premium price.
a. true b. false