Use the above table. At an income of $50
A) real saving is $10. B) real saving is $20.
C) real dissaving is $10. D) real dissaving is $50.
C
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The Fisher effect says that
a. the nominal interest rate adjusts one for one with the inflation rate. b. the growth rate of the money supply is negatively related to the velocity of money. c. real variables are heavily influenced by the monetary system. d. All of the above are correct.
The concept of comparative advantage leads to the conclusion that:
A) beneficial trade takes place if one country can produce everything more efficiently than another country. B) trade will benefit the two countries if the relative costs of production differ in the two countries. C) benefits from trade are possible only if all tariffs are eliminated. D) everyone benefits from increased trade both in the short run and the long run.
A change in business inventories is:
A. not counted in GDP because it does not represent final sales. B. counted in GDP as investment. C. counted in GDP as net exports. D. counted in GDP as consumption.
A decrease in taxes will cause
A. AD to increase (move to the right). B. AS to increase (move down and to the right). C. AS to decrease (move up and to the left). D. AD to decrease (move to the left).