The wealth effect explains the:
A. negative relationship that exists between consumer spending and overall price level.
B. positive relationship that exists between consumer spending and overall price level.
C. negative relationship that exists between consumer spending and overall asset valuation.
D. positive relationship that exists between consumer spending and overall asset valuation.
A. negative relationship that exists between consumer spending and overall price level.
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In a closed economy, private saving is equal to which of the following? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
A) Y + TR - C - T B) Y - C - T C) Y - G - T + TR D) Y - G - T
Markets can be missing:
A. because public policy prevents the market from existing. B. when the production of a particular good is banned. C. because of a lack of accurate information between potential buyers and sellers. D. All of these are true.
The law of one price (LOOP) indicates that:
a. Nominal interest rates in countries should be identical because if they were not, arbitragers could make risk-free profits. b. The price of a good in one country should be equal to the exchange-rate-adjusted price of the same product in another country. c. The quantity produced of a good in one country should be equal to the exchange-rate-adjusted quantity produced of the same product in another country. d. The nominal wage rate in one country should be equal to the exchange-rate-adjusted wage of the average laborer in another country. e. All the above.
There is a direct relationship between the opportunity cost of bad behavior in a public venue and the use of bad behavior in that venue
Indicate whether the statement is true or false