When people are in financial difficulty an advisor will usually recommend establishing a budget for spending. One reason is that a budget will act to discipline behavior if people psychologically are subject to
A. mental accounts.
B. bounded rationality.
C. segregated gains.
D. the halo effect.
Answer: A
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A country reports exports minus imports of $300 billion, net interest income of $30 billion, net transfers of $50 billion, and no change in official reserves. The country is a
A) net liability. B) net borrower. C) net lender. D) debtor nation. E) net asset.
An exogenous increase in the country's trade balance shifts the
a. IS schedule to the left. b. IS schedule to the right. c. LM schedule to the left. d. LM schedule to the right.
If the marginal-cost curve is rising, then so is the average-total-cost curve
a. True b. False Indicate whether the statement is true or false
Suppose in the city of Smugsburg, Blu-ray disc rental stores operate in a monopolistically competitive market. If the price of Blu-ray disc rentals in Smugsburg is currently equal to $5 per tape and the average cost of renting videos is $1 per Blu-ray disc, in the long run we expect the price of renting Blu-ray discs to:
A. increase. B. stay the same. C. decrease, and the average cost of producing Blu-ray disc rentals to increase. D. decrease, and the average cost of producing Blu-ray disc rentals to decrease.