Recall from Chapter 5: Other things constant, when households lower their time preferences, and demonstrate a willingness to postpone some present consumption for future consumption,
A) their savings increase.
B) their savings decrease.
C) the budget deficit increases.
D) the budget deficit decreases.
A
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Which of the following is an example of natural monopoly?
A) cellular phone companies in a large city B) local water utility companies C) major league sports franchises in the largest cities D) All of the above are natural monopolies.
You withdraw some of your savings to invest in a new business venture. Which of the following statements is true?
a. The return you will earn from this new investment is your opportunity cost. b. The interest rate you would have earned in the bank is higher than the return from this investment. c. The return you expect to earn from this new investment must exceed your opportunity cost. d. The return you expect to earn from this new investment must equal your opportunity cost.
The three main crops of the nation from the end of the Civil War to the turn of the century (1900) were (1) ______, (2) __________; and (3) _________.
Fill in the blank(s) with the appropriate word(s).
Consumers benefit from monopolistically competitive markets because:
A. they only have one good from which to choose. B. in this type of market, producers supply goods in a variety of locations or with a variety of characteristics. C. in this type of market, goods are sold at a price equal to the marginal cost of production. D. goods are sold at a price equal to marginal revenue.