When consumers start to spend less and save more, classical macroeconomists believe that interest rates will then ______________ resulting in a(n) ________________ in investment
A) rise; increase
B) fall; increase
C) fall; decrease
D) rise; decrease
B
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Price elasticity of demand is a numerical measure of how much quantity demanded rises as price falls or quantity demanded falls as price rises.
Answer the following statement true (T) or false (F)
Suppose you are risk averse and you are deciding between two investments. One has a guaranteed return of 5% while the second has a 50% chance of a 10% return and a 50% chance of a 0% return. Which investment would you choose? Why?
What will be an ideal response?
In the calculation of a country's GDP per capita, the entire population of the country is included, irrespective of age
a. True b. False Indicate whether the statement is true or false
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, these flows would have had the following effect on the reserves account and monetary base
a. Reserves account would rise and monetary base would fall. b. Reserves account would not change and monetary base would fall. c. Reserves account would fall and monetary base would not change. d. Reserves account would fall and monetary base would fall. e. Reserves account would fall and monetary base would rise.