If the inflation rate exceeds the nominal rate of interest,
a. the real interest rate is negative.
b. lenders lose.
c. savers lose.
d. all of these.
d
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On average, people in the United States spend a greater percentage of their income on health care than do people in most other countries
Indicate whether the statement is true or false
The smaller the marginal propensity to save, other things constant, _____
a. the smaller the marginal propensity to consume b. the smaller the multiplier c. the flatter the consumption function d. the steeper the consumption function e. the steeper the saving function
The equilibrium rent for marginal land
A. equals zero. B. depends on the supply and demand of land. C. exceeds the opportunity cost of the land. D. is always greater than the equilibrium rent for nonmarginal land.
Moral hazard encourages people to take risks
a. True b. False Indicate whether the statement is true or false