A decrease in the interest rate will
A. produce a decrease in current savings.
B. produce an increase in current savings.
C. depend on the particular consumer's preferences.
D. produce an increase in current consumption.
Answer: C
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Suppose an industry trade group has convinced legislators that a price floor should be used so that producer surplus is maximized in the market for milk. The group argues that such a policy would save the "family farm"
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If a firm's inventory decreases, the gross domestic product (GDP) also decreases
a. True b. False Indicate whether the statement is true or false
Inflation is measured by examining the percent increase in the ________ from one year to the next.
A. CPI B. price of gas C. GDP growth D. nominal GDP