If consumption spending is greater than disposable income, then there is
A. dissaving.
B. excess thrift.
C. negative net investment.
D. positive savings.
Answer: A
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You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your opportunity cost of seeing a movie this afternoon?
A. $57 B. $8 C. $12 D. $22
Which of the following would not appear in the investing activities of the statement of cash flows?
A. Sale of investments B. Purchase of land C. Purchase of inventory D. All of the above would appear in the investing section of the statement of cash flows
Depreciation of the dollar will tend to
A. decrease the prices of both American imports and exports. B. increase the prices of both American imports and exports. C. decrease the prices of the goods Americans import, but increase the prices to foreigners of the goods Americans export. D. increase the prices of the goods Americans import, but decrease the prices to foreigners of the goods Americans export.
Define the Taylor rule.
What will be an ideal response?