It is costly to purchase a new car every two or three years because
A) the financing cost is significantly higher for a new car than for a used one.
B) the gasoline tax for the fuel of a new car is generally higher than for a used one.
C) the maintenance cost of a new car is generally higher than for a used one.
D) a new car will depreciate rapidly in value during the first few years of use.
D) a new car will depreciate rapidly in value during the first few years of use.
You might also like to view...
The branch of economics that examines the self-interested behavior of politicians, lobbyists, agencies, bureaucrats, and voters is called
A) microeconomics. B) macroeconomics. C) econometrics. D) public choice.
The Phillips curve is a negative empirical relationship between
A) bond prices and interest rates. B) unemployment and output. C) inflation and the real interest rate. D) unemployment and inflation.
It is widely believed that the Federal Reserve's most important function is
A) to provide loans to the federal government. B) to regulate the money supply. C) to set the legal, controlled consumer interest rates. D) to lend to risky customers.
A consumption-based theory of the determination of the real interest rate is based on the assumption that: a. a rise in the real interest rate will increase current consumption
b. the real interest rate must adjust to make people willing to experience changing consumption levels over time. c. the real interest rate is determined by the supply and demand for investment and is therefore unaffected by consumption decisions. d. the real interest rate must be positive.