The equilibrium real interest rate in Belgium will be
A) generally above the world real interest rate.
B) generally below the world real interest rate.
C) equal to the world real interest rate.
D) determined by the equilibrium between desired domestic saving and desired domestic investment.
C
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Some high-end retail stores that distribute mail-order catalogs will prominently offer some very high priced goods for sale (for example, a luxury sports car with gold-plated interior trim) in addition to their regular line of merchandise
Behavioral economists argue that the stores do not really plan to sell these goods, but they use these items to provide the customers with a high reference point for the prices of the other goods in the catalog. This practice is an example of: A) the ultimatim game. B) loss aversion. C) anchoring. D) none of the above
One reason that we might observe a rise in net capital outflow could be interest rates in the:
A. rest of the world are declining, relative to the U.S. B. U.S. are declining, relative to the rest of the world. C. U.S. and the world are all declining. D. U.S. and the world are all increasing.
If we look at governmental budgets over time using nominal figures, we
a. have a clearer understanding of the real size of the budget b. are able to focus on the real impact of government spending on potential GNP c. tend to overestimate the size of the budgetary growth d. usually underestimate the size of the burden of the debt e. are ignoring what we can learn from nominal data
What is the substitution effect for leisure demand?
What will be an ideal response?