Suppose that the interest rate paid to savers increases. As a result, Tom wishes to save less. This suggests that, for Tom,
A) the substitution effect is greater than the income effect.
B) the income effect is greater than the substitution effect.
C) utility maximization is not occurring.
D) future consumption is a luxury.
B
Economics
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The financial innovation of numerical credit scoring contributed to the ________
A) "democratization of credit" B) reduction of loan-to-value ratios C) "depersonalization of credit" D) reduction of information asymmetries
Economics
When the marginal product of labor diminishes,
a. average fixed cost rises. b. average variable cost is constant. c. marginal cost rises. d. average total cost must rise. e. total cost rises at a diminishing rate.
Economics