The total amount of outstanding IOUs a nation is obligated to repay other nations and international organizations is called

Firms in perfectly competitive industries have a ________ individual demand curve when the price is on the vertical axis and the quantity is on the horizontal axis. The shape of the curve is result of the firm being a ________

A) horizontal; price taker B) downward sloping; price maker C) vertical; price taker D) downward sloping; price taker

Suppose tax laws were reformed to encourage saving by increasing the rate of return on savings. Which of the following would be true?

a. Both the income effect and the substitution effect would tend to increase the amount of money a household saved. b. The income effect would tend to increase household savings while the substitution effect would tend to decrease household savings. c. The income effect would tend to decrease household savings while the substitution effect would tend to increase household savings. d. Both the income effect and the substitution effect would tend to decrease the amount of money a household saved.