The mangers of Healthy Snacks and Healthy Bars are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?
A) an announcement by Healthy Snacks regarding their future plans, but not an announcement by Healthy Bars regarding their future plans
B) the Pareto criterion
C) an announcement made by either firm regarding their future plans
D) a focal point
A) an announcement by Healthy Snacks regarding their future plans, but not an announcement by Healthy Bars regarding their future plans
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If the marginal propensity to consume is 0.75, the marginal propensity to save is
A) 0.25. B) 0.5. C) 1. D) 3.
Other things the same, an increase in the U.S. interest rate
a. raises net capital outflow which decreases the quantity of loanable funds demanded. b. raises net capital outflow which increases the quantity of loanable funds demanded. c. lowers net capital outflow which decreases the quantity of loanable funds demanded. d. lowers net capital outflow which increases the quantity of loanable funds demanded.
All of the following will increase the demand for labor by firms in an industry except
A. an increase in the price of the product produced by the industry. B. a decrease in the prices of inputs that substitute for labor. C. an increase in the marginal product of labor resulting from technological change. D. an increase in the demand for the product produced by the industry.
The supply curve of loanable funds is upsloping because:
A. businesses find more investments to be profitable at low interest rates than at high interest rates. B. government budget deficits vary inversely with the equilibrium interest rate. C. households are willing to save more at high interest rates than they are at low interest rates. D. banks lend more at low interest rates than they do at high interest rates.