An increase in uncertainty about the future will tend to ________ precautionary saving and ________ the desired level of wealth for households
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
A
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If you split your dessert with your date, you are using a ________ allocation method
A) first-come, first-served B) sharing equally C) contest D) personal characteristics E) command
Refer to the scenario above. The market for Good A in Eduland is an example of a ________
A) monopoly B) duopoly C) monopolistic competition D) perfect competition
For each of the following changes, what happens to the real interest rate and output in the long run, after the price level has adjusted to restore general equilibrium? How would the results differ, if at all, between the classical and Keynesian
model? Draw a diagram for each part to illustrate your result. (a) Wealth rises. (b) Money supply rises. (c) The future marginal productivity of capital increases. (d) Expected inflation declines. (e) Future income declines.
The Norwegian government uses $500,000 of previously obtained U.S. dollars to buy $500,000 of police cars from a U.S. company. As a result of this exchange, by how much, if at all, and in which direction did: A. U.S. net exports change? B. U.S. net capital outflow change?