If the interest rate increases, then the:
A. economy will move to a new point along the existing consumption function.
B. consumption function will shift up.
C. consumption function will shift down.
D. investment demand curve will shift up.
Answer: C
Economics
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Which of the following is NOT an expression for the cost minimizing combination of inputs?
A) MRTS = MPL /MPK B) MPL/w = MPK/r C) MRTS = w/r D) MPL/MPK = w/r E) none of the above
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Governments typically exercise moral judgment in levying excise taxes
Indicate whether the statement is true or false
Economics