It is likely that a small increase in a country's saving rate will have
A) a large effect on per capita real GDP immediately because the increase in saving leads to a much larger rate of economic growth.
B) a small effect on per capita real GDP many years later because the increase in saving will be offset in later years by a decrease in the saving rate.
C) a small effect on per capita real GDP many years later because the increase in saving will have very little effect on the growth rate.
D) a large effect on per capita real GDP many years later because the increase in saving leads to a slightly higher rate of economic growth which has large effects over time.
D
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Use the above figure. The profit-maximizing or loss minimizing output and price will be
A) Q1 and P2. B) Q2 and P3. C) Q3 and P3. D) Q4 and P1.
Assume peanut butter and jelly are complements. Ceteris paribus, an increase in the price of peanut butter will cause the equilibrium price of jelly to
A. Decrease and the equilibrium quantity of jelly to decrease. B. Increase and the equilibrium quantity of jelly to decrease. C. Decrease and the equilibrium quantity of jelly to increase. D. Increase and the equilibrium quantity of jelly to increase.
A permanent increase in demand ______ economic profit in the short run and some firms will ____ in the long run
A. does not change; exit the market B. increases; enter the market C. increases; raise their price D. does not change; advertise their good
The amount of interest owed on a loan of $100,000 after a year at an interest rate of 3 percent is:
A. $30,000. B. $103,000. C. $3,000. D. $100,300.