Higher saving rates mean higher future growth rates because
A) the banks have more money to distribute to their shareholders.
B) saving contributes to more investment, which yields a larger capital stock.
C) the interest earned from savings gives you more wealth.
D) saving contributes to less investment, which yields a larger capital stock.
B
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Average cost curves have the same basic shape as
A. total cost curves. B. marginal cost curves. C. total fixed cost curves. D. average fixed cost curves.
Assume that increasing the utility of the transfer recipient is the only criterion cared about. When comparing a cash transfer payment to an in-kind payment of an equal value it is clear that _____
a. the recipient is always better off with a cash transfer b. the recipient is never worse off with a cash transfer c. the two are identical d. the recipient would prefer an in-kind payment if legally possible
A reduction in the required reserve ratio has the instant effect of:
a. Increasing bank shareholders' equity. b. Increasing total bank reserves c. Increasing excess reserves. d. None of the above is correct. e. Increasing the monetary base.
Which of the following is NOT a basic characteristic of perfect competition?
A. considerable non-price competition B. no barriers to the entry or exit of firms C. a standardized or identical product D. a large number of buyers and sellers