Increasing the amount of consumption spending and reducing the amount of savings ________ investment expenditures, and ________ long-run economic growth in the economy
A) decreases; increases B) increases; decreases
C) increases; increases D) decreases; decreases
D
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When inflation causes the absolute prices of all commodities to rise, what happens to the relative prices of those commodities?
a. The relative prices also rise. b. When absolute prices rise, the corresponding relative prices fall. c. The relative prices are unaffected by changes in absolute prices. d. No prediction can be made about changes in relative prices.
The ability of Intel to spread product development cost over a larger number of units of output arises from
A. constant returns to scale. B. minimum efficient scale. C. diseconomies of scale. D. economies of scale.
Marginal, average, and total figures are unrelated.
Answer the following statement true (T) or false (F)
Current income is 300, expected future income is 363, and the interest rate is 10%. If current income remains 300, while expected future income rises by $63, then maintaining equal consumption across time requires consumption to be
a) 330 b) 340 c) 350 d) 360 e) 370