When real planned saving is greater than real planned investment spending
A. the interest rate will decrease.
B. the interest rate will increase.
C. real GDP will decrease.
D. real GDP will increase.
Answer: C
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If Utopia has a closed economy, the number of cases of tile consumed each is ________ per year, and if it has an open economy the number of cases of tile consumed is ________ per year.
A. 300; 450 B. 300; 200 C. 200; 450 D. 450; 200
Suppose that the government increases a tax paid by employers for hiring workers (for example, Social Security). What are the likely effects on real wages, output and employment? What are the likely magnitudes of these effects?
What will be an ideal response?
A national chain of bookstores has initiated a frequent buyer program. If you buy a frequent buyer card for $10, you are entitled to a 10 percent discount on all purchases for 1 year. This practice is an example of:
A) peak-load pricing. B) intertemporal price discrimination. C) two-part tariff. D) bundling. E) Both A and B are correct.
Which of the following could be responsible for an increase in the price of wheat?
a. an increase in the supply of wheat b. an increase in the demand for wheat c. a decrease in the demand for wheat d. a simultaneous increase in supply and decrease in demand for wheat