Why is the paradox of thrift considered to be a paradox? Because an increase in saving causes
a. consumption to fall, causing the equilibrium level of national income to fall, thus leaving saving unchanged or even lower
b. consumption to also rise, causing the equilibrium level of national income to rise, resulting in higher than anticipated saving
c. investment to also rise, causing the equilibrium level of national income to rise,resulting in higher than anticipated saving
d. investment to fall, causing the equilibrium level of national income to fall, thus leaving saving unchanged
e. consumption to fall, causing the equilibrium level of national income to rise, resulting in higher than anticipated saving
A
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Andrew's utility of wealth schedule is given in the above table. Andrew is offered a job as a cook which pays $10,000. He is also offered a job as a server which will pay $5,000 if tips are poor and $15,000 if tips are good
There is a 50 percent chance that tips will be poor and a 50 percent chance that tips will be good. The expected income from the job as a cook is ________ and from the job as a server is ________. A) $10,000; $15,000 B) $5,000; $5,000 C) $10,000; $5,000 D) $10,000; $10,000
As a percentage of GDP, exports are greater than imports for which of the following countries?
A) France B) China C) the United Kingdom D) the United States