Other things held constant, higher saving rates lead to
A. higher living standards.
B. a lower standard of living.
C. increases in the number of hours workers work.
D. decreases in real per capita GDP.
Answer: A
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The federal budget deficit can be reduced by
A) raising government spending. B) raising transfer payments. C) higher interest rates. D) raising taxes.
Inventories include each of the following except
A) unsold finished goods. B) goods in process. C) raw materials held by firms. D) office equipment.
When considering the velocity of money, the Federal Reserve is most concerned about its
A) stability. B) absolute size. C) determinants. D) sign.
Mika borrows $100,000 to start up her own beauty shop. She pays 5 percent interest on her loan. In order to account for all costs of her business, Mika must not forget:
A. the implicit cost of $100,000. B. the implicit cost of $5,000. C. the explicit cost of $105,000. D. the explicit cost of $5,000.