In the loanable funds market, an increase in the desire to save is translated into a(n)
a. increase in investment spending and slower growth in the capital stock
b. decrease in investment spending and slower growth in the capital stock
c. decrease in investment spending and faster growth in the capital stock
d. increase in investment spending and faster growth in the capital stock
e. increase in investment spending but with no growth in the capital stock
D
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Describe the payoffs for an R&D game of chicken and contrast them with the payoffs in a prisoners' dilemma
What will be an ideal response?
An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the most of each good that can be produced each day if each worker fully specializes according to his/her comparative advantage?
A. 8 computers and 22 shirts B. 5 computers and 14 shirts C. 4 computers and 12 shirts. D. 6 computers and 16 shirts