The trade-off between current consumption and the production of capital goods is also a trade-off between
A. current consumption and future consumption.
B. the future cost for capital goods and future cost of consumption goods.
C. having fewer needs and more wants in the future.
D. satisfying the needs of the poor and the wants of the wealthy.
Answer: A
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Why might a country like Brazil have to offer a much higher interest rate on its government bonds than those offered by the Great Britain?
What will be an ideal response?
The short-run equilibrium of the firm under monopolistic competition has excess capacity.
Answer the following statement true (T) or false (F)
If real GDP doubles and the GDP deflator doubles, then nominal GDP
a. remains constant. b. doubles. c. triples. d. quadruples.
Assume the marginal propensity to consume is 0.8. If consumer spending rises by $20 billion, then total income through the multiplier effect will:
a. Will not change b. Decrease by $100 billion c. Increase by $100 billion d. Increase by $10 billion