Jaxon borrows $10,000 from a bank and withdraws $20,000 from his personal savings to open a tattoo parlor. The interest rate is 3 percent for both the bank loan and his personal savings. Jaxon's implicit costs are $900
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following transactions is NOT recorded in the capital and financial account?
A) foreign investment in the United States B) U.S. investment abroad C) statistical discrepancy D) net interest income
Personal consumption expenditures
a. represent approximately two-thirds of GDP b. are equal to personal income minus individual taxes c. include durable good purchases but not nondurable good purchases d. do not include any intangible consumption items e. include all goods and services bought by the government
A budget constraint line represents combinations of two goods that provide an individual the same total utility.
Answer the following statement true (T) or false (F)
We know that products A and B are related goods, because when the price of A increases
A) the demand curve for B will shift to the right, because A and B are complementary goods. B) the quantity of B demanded will shift along its demand curve, because A and B are complementary goods. C) the demand curve for B will shift to the left, because A and B are complementary goods. D) the demand curve for B will remain unchanged because A and B are substitute goods.