Desired national saving would decrease unambiguously if there were
A. an increase in expected future output and a decrease in government purchases.
B. a fall in both government purchases and expected future output.
C. a decrease in current output and a decrease in taxes.
D. an increase in both expected future output and the expected real interest rate.
Answer: C
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Allison's Auto Art is a company that applies pinstripes to vehicles. Allison's cost for a basic 1-color pinstriping job is $35, and she charges $95 for this service
For a total price of $175, Allison will apply a fancier 3-color pinstripe application to an automobile, a service that adds an additional $40 to the total cost of the package. Should Allison continue to offer the 3-color pinstripe application? A) No, her marginal benefit is less than her marginal cost. B) Yes, she still makes a profit by selling the 3-color application. C) yes, but only if she lowers the price of the 1-color application D) More information is needed for Allison to make this decision.
Disposable income is not:
A. the amount consumers have to spend on goods and services. B. income before tax. C. what consumers base their buying decisions on. D. total income minus taxes.
Production possibilities in an economy decrease as more resources and better technology are utilized.
Answer the following statement true (T) or false (F)
Why do cartels often break down?
What will be an ideal response?