Which of the following statements is true?
A) An individual's current spending increases when he lends money.
B) An individual's current spending decreases when he borrows money.
C) An economic agent lends to move his spending from the future to the present.
D) An economic agent lends to earn a return.
D
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What actions should the Fed take if it believes the economy is about to fall into recession?
What will be an ideal response?
________ in the expected future domestic exchange rate causes the demand for domestic assets to ________ and the domestic currency to depreciate, everything else held constant
A) An increase; increase B) An increase; decrease C) A decrease; increase D) A decrease; decrease
Governments sometime create an excess demand for a product by setting a maximum price that is less than the equilibrium price, resulting in a permanent excess demand for the product. This is known as a price floor.
Answer the following statement true (T) or false (F)
In which of the following examples cited in the text is there the least amount of evidence of the potential for input substitution?
A) Automobile production. B) Pipe organ production. C) French fry production. D) Production of health care services.