The household budget constraint may have a kink because

A) there is uncertainty.
B) households prefer diversity.
C) households may substitute consumption for leisure, or the reverse.
D) leisure is limited by the number of available hours.

D

Economics

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Suppose the U.S. interest rate is 6 percent and the world interest rate is 5 percent. The U.S. interest differential is

A) -1 percent. B) 1.2 percent. C) 1 percent. D) -0.83 percent.

Economics

An increase in the government budget deficit will not lead to a current account deficit if domestic investment declines

Indicate whether the statement is true or false

Economics