Holding other factors constant, a decline in the price of new capital goods will:
A. increase national saving.
B. increase investment.
C. decrease national saving.
D. decrease investment.
Answer: B
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Refer to the figure below. Suppose the solid line shows the demand for coffee. If coffee and tea are substitutes, and the price of tea falls, then you would expect: 
A. an increase in the quantity of coffee demanded, but no shift in the demand curve. B. the demand curve to shift to D(B) C. the demand curve to shift to D(A). D. a decrease in the quantity of coffee demanded, but no shift in the demand curve.
In most state-run lotteries,
a. the winner receives a single lump-sum payment b. the present value of the winnings is less than the number of dollars won c. the present value of the winnings exceeds the number of dollars won d. winners are paid the present value of the total amount won e. winners are paid only in the distant future
Maureen left her teaching job, which paid $30,000 per year, and invested $20,000 of her retirement fund (which was earning 10 percent interest) in a new real estate business. Her accountant predicted a $60,000 revenue the first year. Her husband, an economist, forecast her profit to be
a. $10,000. b. $28,000. c. $32,000. d. $60,000.
Which statement is true?
A. Only monetary policy can affect aggregate demand. B. Only fiscal policy can affect aggregate demand. C. Both monetary and fiscal policy can affect aggregate demand. D. Neither monetary nor fiscal policy can affect aggregate demand.