During a recession the Keynesian consumption theory predicts that the savings rate will ________ and the ________ theory that savings rate will ________
A) fall; PIH; fall
B) fall; LCH; fall
C) rise; PIH and LCH; fall
D) rise; PIH and LCH; rise
C
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How are producer and consumer surpluses maximized in a competitive market?
What will be an ideal response?
George likes skiing and needs one pair of bindings for each pair of skis he owns. George's indifference curves for skies and bindings
A. are straight lines. B. are approximately L-shaped. C. slope downward. D. slope upward.
If the demand for good A is more elastic than the demand for good B, a small decrease in supply in both markets will cause
a. a much greater increase in price for good A than for good B b. a much greater increase in price for good B than for good A c. the price will increase by the same amount in both markets d. only the price of good B will increase e. only the price of good A will increase
The Fed’s tools of monetary policy are
A. government expenditures, interest rates, and taxation. B. open-market operations, lending to banks, reserve requirements, and paying interest on reserves. C. the money supply, government purchases, and taxation. D. none of these.