Conscious manipulation of the interest rate causes it to become a less effective tool in allocating resources among time periods
a. True
b. False
Indicate whether the statement is true or false
True
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In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the cost of the CPI basket in 2012?
A) $430 B) $335 C) $320 D) $540
As the interest rate increases, ceteris paribus, the trade-off between present and future consumption
A. Encourages less saving. B. Makes it more appealing to sacrifice current consumption. C. Is not affected. D. Makes it less appealing to sacrifice present consumption.
The price system
A) is the voluntary exchange system. B) is old fashioned and is no longer used. C) is used only in countries that are developing. D) is used by the government to maintain stable supply of goods.
Refer to the graph below, where Sd and Dd are the domestic supply and demand curves for a product. The world price of the product is $6. If an import quota of 40 units were imposed on the product, then the equilibrium price would be:
A. $6 and the quantity consumed 80 units
B. $8 and the quantity consumed 70 units
C. $10 and the quantity consumed 60 units
D. $12 and the quantity consumed 50 units