Refer to Figure 4.4. The international capital market will be in equilibrium when the real interest rate in the United States is ________ and the real interest rate in the rest of the world is ________
A) 7%; 3%
B) 5%; 7%
C) 9%; 3%
D) 5%; 5%
D
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At about the time the Sherman Act was passed, changes in state incorporation laws had effects that tended to offset some of its provisions
Indicate whether the statement is true or false
Supply shows
a. the quantity offered for sale at every possible price. b. the quantity people will buy at every possible price. c. the changes in quantity. d. how price changes when people buy more.
Which of the following is not a reason to expect the slope of a consumer's indifference curve for current and future consumption to be greater than 1 with an endowment along the 45° line?
a. People are naturally impatient. b. One is never sure if he will be alive in the future. c. A unit consumed today offers memories of consumption into the future. d. A decline in interest rates.
An outcome is socially optimal if it:
A. maximizes total economic surplus. B. is determined by the government. C. leaves no unexploited opportunities for individuals. D. is an equilibrium outcome.