When Kim in Korea buys stock in GE (General Electric), NCO:
A. is zero.
B. decreases.
C. is unaffected.
D. increases.
Answer: B
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The above table has data from the nation of Atlantica. Based on these data, when disposable income equals 8.0 there is
A) dissavings of $0.5 trillion. B) dissavings of $15.5 trillion. C) savings of $15.5 trillion. D) savings of $0.5 trillion. E) dissavings of $7.5 trillion.
________ might cause the borrowing constraint to become non-binding, even though the consumer still cannot borrow
A) An increase in future (expected) income B) An increase in the real interest rate C) A decrease in current income D) A decrease in the real interest rate
Which of the following is an example of a variable ordering cost?
A) the cost of submitting the order B) the cost of processing the bill C) a delivery cost that depends of the number of units ordered D) a fixed delivery charge
An increase in a budget deficit financed by borrowing can increase interest rates and reduce investment spending thereby creating lower rates of economic growth
a. True b. False Indicate whether the statement is true or false