The paradox of thrift tells us that even though people try to save more, they end up saving
a. no more than they did before and maybe even less depending on the shape of the investment curve
b. no more than they did before and maybe even less depending on the shape of the consumption curve
c. no more than they did before and maybe even less depending on the shape of the saving curve
d. no more than they did before and maybe even less depending on the shape of the national income curve
e. even more than they anticipated because thrift is always good
A
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Which of the following firms are in a monopolistically competitive market?
A) the many retail firms such as JCPenney, Sears, The Gap, and so on B) the sole local providers of electricity, such as Kansas Power and Light, or Pacific Gas and Electric C) the many farmers that grow wheat D) None of the above are in a monopolistically competitive market.
Supply is said to be inelastic if the quantity supplied responds substantially to changes in the price and elastic if the quantity supplied responds only slightly to price
a. True b. False Indicate whether the statement is true or false
Under what conditions will the inflationary impact of an expansionary monetary policy be the largest?
A. When equilibrium real GDP is at potential real GDP. B. When there is a recessionary gap. C. When unemployment rates are high and there is substantial excess industrial capacity. D. When real GDP is falling and the price level is decreasing.
Saving differs from savings in that
A. saving is a flow while savings is a stock. B. saving is both a flow and a stock while savings is a stock. C. saving is a stock while savings is a flow. D. saving is a stock while savings is both a flow and a stock.