According to Classical interest rate theory, rising interest rates will
A) increase the demand for money.
B) decrease the demand for money.
C) increase investment expenditures.
D) increase the saving rate.
D
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Refer to Table 10-2. Using the table above, what is the approximate growth rate of real GDP from 2014 to 2015?
A) 1% B) 2% C) 3% D) 4%
In comparing accounting profit with economic profit, we generally find that
A) accounting profit is less than economic profit. B) economic profit and accounting profit are the same in the short run. C) accounting profit is greater than or equal to economic profit. D) economic profit exceeds accounting profit by the amount of opportunity costs.
The tax treatment of corporate profit means that corporations
a. cannot profitably issue common stock. b. choose investment opportunities more efficiently than do other types of firms. c. limits the things in which corporations can invest. d. can generally avoid paying federal taxes but not state taxes.
If disposable income is $400 billion, autonomous consumption is $60 billion, and MPC is 0.8, what is the level of saving?
A. $20 billion. B. $210 billion. C. $380 billion. D. $590 billion.