Why are high domestic savings rates important?
What will be an ideal response?
It correlates with high domestic investment
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A loud band plays a concert late at night in a neighborhood park. The noise produced by the band that keeps the neighbors not attending the concert awake is
A) only a private cost. B) only an external cost. C) both a private cost and an external cost. D) neither a private cost nor an external cost. E) a private benefit because the neighbors get to hear the band.
While some countries might be better off (in terms of social surplus) from the imposition of a tariff, the world overall is always worse off (in terms of social surplus) when import tariffs are imposed.
Answer the following statement true (T) or false (F)
What role do households play in the capital market? What role do firms play?
What will be an ideal response?
An unexpected drop in the growth rate of the CPI should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down