If the rate of return is higher than the cost of borrowing the:
A. investor will lose money on net after paying back the loan.
B. borrower will make more money on net than the saver.
C. saver will make less money on net than the borrower.
D. investor will make money on net after paying back the loan.
Answer: D
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The idea that creating incentives for individuals and firms to increase productivity leading to an increase in long-run aggregate supply is
A) the Ricardian equivalence theorem. B) demand-side economics. C) supply-side economics. D) consistent with crowding out.
Refer to Table 3.1. Which of the following cannot be true?
A) The consumer could be indifferent between A and B. B) A and C could be on the same indifference curves. C) The consumer could be indifferent between B and C. D) A and C could be on different indifference curves.
The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that:
A. all industries will claim that they are infant industries in order to gain protection. B. the protected industry will become too efficient and drive out foreign competition. C. once in place, it is difficult to remove protection even as the industry matures. D. it causes the goods that are produced in the protected industry to have lower prices.
If the consumption schedule is linear, then the:
A. saving schedule will also be linear. B. MPS will decline as income rises. C. MPC will decline as income rises. D. APC will be constant at all levels of income.