Economist Steve Landsburg has pointed out that Ebenezer Scrooge's change in behavior from miser to spender might actually be detrimental to the economy because
A) Scrooge's miserly saving helped contribute to the production of investment goods rather than consumption goods.
B) Scrooge was happiest when he was saving money, and happiness is the key to economic growth.
C) saving has to be greater than consumption for the economy to grow.
D) Scrooge's consumption habits were more detrimental to the environment than were his earlier saving habits.
Answer: A
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If Ed Sike (who you met in Chapter 8 ) lowers ticket prices to a point where the number of tickets demanded is greater than the number of seats available,
A) Ed will be in a good position to grant favors to his friends. B) net revenue will be negative. C) net revenue will be positive but not necessarily at the maximum level. D) resources will not be allocated efficiently. E) total revenue will be maximized.
Monetary policy affects which of the following variables in the long run?
A) the level of output B) the rate of unemployment C) the rate of inflation D) the real interest rate E) all of the above