Given the values in the table above, if the real interest rate rises from 5 to 6, the change in household saving is ________
A) negative 0.5
B) negative 1.55
C) negative 0.45
D) 1.55
E) none of the above
C
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Which point shows where the United States economy was operating during the low point of the Great Depression?
A. Point A
B. Point B
C. Point C
D. Point D
During the Winter Olympics in Vancouver, some residents rented rooms to visitors. This behavior
A) helped reduce the shortage of hotel rooms caused by the high demand during the Olympics. B) reduced the demand for tickets to the Olympics since many local residents left town while they rented out space in their homes. C) hurt the hotel market in Vancouver in the long run because new hotels that should have been built were not built for the Olympics. D) raised the demand for hotel rooms in Vancouver and should have been prevented by the city of Vancouver.
Consider two straight-line PPFs. They have the same vertical intercept, but curve I is flatter than curve II. The opportunity cost of producing the good on the vertical axis
What will be an ideal response?
The Ricardian equivalence theorem states that
A. increases in government spending have a larger impact on real Gross Domestic Product (GDP) than decreases in taxes. B. an increase in the government budget deficit has no effect on real Gross Domestic Product (GDP) because it only affects the price index. C. an increase in government spending has no effect on aggregate supply. D. an increase in the government budget deficit created by a current tax cut has no effect on aggregate demand.