For a simple economy (no government, no foreign sector), the condition for equilibrium can be stated correctly as
A. saving equals actual investment.
B. saving equals inventory accumulation.
C. saving equals planned investment.
D. inventory accumulation equals planned investment.
Answer: C
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Which of the following is true of the paradox of thrift?
a) The paradox of thrift occurs when investment is not related to income. b) The paradox of thrift occurs when households intend to save less. c) The paradox of thrift causes consumers to save less. d) The paradox of thrift occurs when households intend to consume more
Grocery store coupons, mail-in rebates, senior discounts, and in-state versus out-of-state tuition fees are all examples of:
a. government intervention. b. price neutrality. c. arbitrage pricing. d. price discrimination. e. illegal business practice.