Dissaving occurs when the consumption function lies below the 45-degree line
a. True
b. False
Indicate whether the statement is true or false
False
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When a U.S. company shifts its call-center operations overseas to reduce costs, it is applying the economic concept of
A) using assumptions to simplify. B) thinking at the margin. C) comparative advantage. D) diminishing returns.
To eliminate a recessionary gap, what fiscal policy should the government pursue?
What will be an ideal response?
Which of the following types of economic regulation is most likely to encourage firms to inflate their costs?
A) price cap regulation B) rate of return regulation C) cartel regulation D) earnings sharing and price cap regulation
If inflation is completely anticipated,
A) lenders lose in the economy. B) borrowers lose in the economy. C) firms lose because they incur menu costs. D) no one loses in the economy.