If individuals save less because inflation lowers returns on savings, this should ________ real interest rates and ________ investment expenditures
A) raise; increase
B) raise; reduce
C) lower; increase
D) lower; reduce
B
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Refer to Table 1-3. What is Santiago's marginal benefit if he decides to stay open for an extra two hours instead of one hour?
A) $40 B) $50 C) $120 D) $190
The gap in ______________ standards between high-income and low-income countries raises concerns regarding increasing global trade and suggests that restrictions are needed to protect society.
a. environmental b. quality c. living d. employment
If aggregate expenditures are lower than real GDP:
A. actual real output is less than equilibrium real output. B. aggregate output increases. C. employment increases. D. there will be unplanned increases in inventories.
If the economy were producing at point C and moves to point B
Hypothetical Production Schedule for a Two-Product Economy
A. 4 units of capital goods are gained, while the capacity to produce 32 consumer goods are lost.
B. 16 units of capital goods are gained at an opportunity cost of producing 40 consumer goods.
C. 16 units of capital goods are gained at an opportunity cost of producing 72 consumer goods.
D. 4 units of capital goods are gained, while the capacity to produce 72 consumer goods are lost.