An increase in interest rates
A) decreases investment spending on machinery, equipment, and factories, but increases consumption spending on durable goods and net exports.
B) decreases investment spending on machinery, equipment, and factories, and consumption spending on durable goods, but increases net exports.
C) decreases investment spending on machinery, equipment, and factories, consumption spending on durable goods, and net exports.
D) increases investment spending on machinery, equipment, and factories, consumption spending on durable goods, and net exports.
Answer: C
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Which of the following best defines consumer surplus?
a. the amount that individuals actually paid, minus the amount that they would have been willing to pay b. the amount that a seller is paid for a good minus the seller’s actual cost c. the amount that individuals would have been willing to pay, minus the amount that they actually paid d. when it is impossible to improve the situation of one party without imposing a cost on another
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.According to the figure shown, Sarah:
A. should put forth low effort, regardless of what Joe chooses to do. B. should take the first-mover advantage and put forth low effort. C. should put forth high effort, regardless of what Joe choose to do. D. does not have a dominant strategy.
Refer to the table below. The average cost of 5 units of activity is:Units ofActivity TotalCostTotalBenefit0$0$01$2$122$6$223$12$304$20$365$30$406$42$427$56$43
A. $8 B. $10 C. $4 D. $6
In economics, the long run is considered to be
A. The time period when all costs are variable. B. More than two years. C. The time period when all costs are explicit. D. One year.