A macroeconomic surplus occurs when consumers reduce their consumption expenditures and increase their saving

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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If the Fed's policy reaction function equals r = .02 + p, where r is the real interest rate, p is the inflation rate. If the real rate of interest is set at 5%, then the rate of inflation must be:

A. 4% B. 2%. C. 1%. D. 3%.

Economics

Which of the following statements is true?

A) The marginal revenue of a monopolistically competitive firm will be positive at low prices and negative at high prices. B) The marginal revenue of a monopolistically competitive firm will be positive at high prices and negative at low prices. C) Because the demand curve for a monopolistically competitive firm is downward-sloping its marginal revenue will be negative. D) The marginal revenue of a monopolistically competitive firm will be always be positive.

Economics

Have Malthus' predictions about population growth come true?

A) no, because modern birth control has limited population growth in all nations B) yes, as evidenced by the famine and food shortages affecting every nation today C) no, because the world's food supply has grown much more rapidly than Malthus foresaw D) Yes. The world's food supply, measured by calories per person, continues to fall.

Economics

Cars produced by General Motors in Mexico would be included in U.S. Gross Domestic Product

a. True b. False Indicate whether the statement is true or false

Economics