If the substitution effect is greater than the income effect, a decrease in interest rates will
A. increase both saving and consumption spending by households.
B. decrease both saving and consumption spending by households.
C. increase saving and decrease consumption spending by households.
D. decrease saving and increase consumption spending by households.
Answer: D
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Per capita real GDP is:
a. equivalent to the real GDP level. b. a measure of the value of output produced and available to an average person. c. higher in developing countries than in developed countries. d. a measure of an economy's income distribution. e. a measure of the GDP per country.
Both foreign direct investment and foreign portfolio investment by U.S. residents increase U.S. net capital outflow
a. True b. False Indicate whether the statement is true or false
The opportunity cost of going to college for a student receiving a scholarship
A) is the income that she would have earned if she did not go to college. B) is the risk of dropping out. C) is the expenses for food and clothing that she purchases while in college. D) is zero because she does not have to pay tuition.
________ occurs when a large, powerful firm drives smaller firms out of the market by temporarily selling at an artificially low price.
A. A dominant strategy B. Predatory pricing C. A maximin strategy D. A prisoners' dilemma