Refer to Figure 10-5. "Crowding out" of firm investment as a result of a budget deficit is illustrated by the movement from ________ in the graph above
A) C to A B) A to B C) B to A D) B to C
B
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Using the table above, and assuming no bequest, what amount of consumption is chosen in period 1, if the consumer wants consumption in the two periods to be equal?
If initial wealth is $40,000, what amount of consumption is equal over the two periods?
The effectiveness of a country's military expenditures depends on _____
a. how much other nations spend in response b. whether or not they are in an arms race c. whether they have effectively estimated demand for national defense d. depends on the size of a country
If Congress increased the tax rate on interest income, investment
a. would increase and saving would decrease. b. would decrease and saving would increase. c. and saving would increase. d. and saving would decrease.
An increase in the quantity of loanable funds traded means that
a. firms are borrowing less and investment decreases. b. firms are borrowing less and investment increases. c. firms are borrowing more and investment increases. d. firms are borrowing more and investment decreases.