Investment in capital goods only makes sense when
a. the capital goods can be used to increase the future output of consumption goods.
b. the savings rate of a country is low.
c. the interest rate is high and people have a positive rate of time preference.
d. economies are organized along capitalist lines.
A
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The single source of concern about the national debt is
a. gimmicks like the National Debt Clock. b. the interest payments that must be made on the debt every year. c. the transfer payments that must be made every year. d. the large trade deficits that we face with other countries. e. none of the above.
A craze for apples in Riverdale increases the quantity demanded at every price by five bushels. Between any two prices, the new demand curve will be ____ the old demand curve
a. more elastic than b. less elastic than c. equal in elasticity to d. More information is needed to predict the relationship.