How does increased household borrowing affect present and future consumption?
What will be an ideal response?
Increased borrowing will increase current consumption possibilities, which shift the consumption schedule upward. But borrowing reduces wealth by increasing debt, which in turn reduces future consumption possibilities because the borrowed money must be repaid.
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Explain dumping
What will be an ideal response?
Which of the following would reduce a country's Economic Freedom of the World rating?
What will be an ideal response?
If a country grows at an average rate of 5 % per year over a 5 year period, then its compounded growth rate over that period is roughly:
A. 32.7 %. B. 27.6 %. C. 35.0 %. D. 20.5 %.
Based on this graph, which of the following are the key components of a contractionary monetary policy?
a. Price level increases; real gross domestic product increases; aggregate demand increases.
b. Price level decreases; real gross domestic product increases; aggregate demand increases.
c. Price level decreases; real gross domestic product decreases; aggregate demand decreases.
d. Price level increases; real gross domestic product decreases; aggregate demand decreases.