China's government runs a budget surplus. As a result,
A) saving will exceed investment.
B) if there is no Ricardo-Barro effect, the supply of loanable funds curve lies to the right of the private supply of loanable funds curve.
C) the quantity of loanable funds decreases.
D) interest rates should increase.
E) the Ricardo-Barro effect predicts that the real interest rate will increase.
B
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Moral hazard refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off
Indicate whether the statement is true or false
Which of the following is NOT a union wage and employment strategy?
A) ensuring employment for all members of a union B) maximizing aggregate income of workers C) maximizing wage rates for some workers D) minimizing the adjusted gross income of non-members
Which of the following is related to the concept of trade-off used in economics?
a. Paying tuition to attend college b. Paying a high price for a movie ticket on the first day of screening c. Not having enough information available to make a rational decision d. Giving up one good or activity in order to obtain some other good or activity e. Having your cake and eating it too
Pepsi uses advertising to create the impression that Pepsi is superior to any other soft drink. Pepsi is attempting to:
A. differentiate Pepsi from other types of soft drinks. B. lower the marginal cost of producing for Pepsi. C. sell less Pepsi so they can raise the price of Pepsi. D. convince consumers that Pepsi is identical to other soft drinks.