According to the life-cycle theory of consumption, people tend to ________ during their main working years.
A. consume more than they earn
B. save
C. accumulate negative wealth
D. dissave
Answer: B
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Inflation helps lenders and hurts borrowers
Indicate whether the statement is true or false
Loans generally require equal payments over a set period of time.
a. true b. false
Over the past 50 years, there has been an increase in spending on public education without a noticeable improvement in student performance. One explanation given by economists on why student performance has not improved is that
A) not enough funds have been spent on public education. B) schools are providing high-priced services that are not valued by parents. C) the quantity of educational services has not increased beyond the pre-subsidy equilibrium. D) too much competition for educational services.
To have more consumer goods in the future, we must
A) produce more capital goods today. B) lower current income. C) get government involved in the production process. D) stop producing all goods today.