In the IS model, assuming that the real interest rate does not change, an increase in ________ leads to an increase in equilibrium saving by households

A) autonomous consumption
B) taxes
C) financial frictions
D) all of the above
E) none of the above


E

Economics

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Assume MUc and MUd represent the marginal utilities that Alyssa receives from the consumption of products C and D, respectively. Given a fixed budget, Alyssa could increase her total utility by spending more on C and less on D if initially

A.  > 
B. MUMUc
C. MUMUc
D.  < 

Economics

Which of the following is not a store of value?

a. Federal Reserve notes. b. Credit card. c. Debit card. d. Passbook savings deposit.

Economics

Which of the following statements is true with respect to nonrenewable natural resources?

a. With proper management, more natural resources can be created. b. The economy will never run out of the resource since it can always find new supplies as the price rises. c. Economists can predict with reasonable accuracy when the supply will be depleted. d. Before the last unit is taken from the earth, the economy is likely to already have abandoned it and switched to another. e. Water is an example of a nonrenewable natural resource.

Economics

All of the following are characteristics of less-developed countries except

a. a high birth rate b. low population growth c. dependence on natural resource exports d. increasing GDP per capita e. inadequate infrastructure

Economics