Wars, new inventions, harvest failures, and changes in government policy are examples of

If interest rates are rising in an economy, what might the relationship be between savings and investment that is causing this to happen?

a) Savings is greater than investment demand. b) Investment demand is greater than savings. c) Savings and investment are both rising rapidly. d) Savings and investment are both falling rapidly.

For allocative efficiency to hold

A) price must equal marginal revenue of the last unit sold. B) price must equal the marginal cost of the last unit produced. C) the average variable cost must be minimized in production. D) the average total cost must be minimized in production.