The idea that higher prices reduce the purchasing power of financial assets and lead to less consumption and more saving is known as the
a. real wealth effect
b. interest rate effect
c. foreign purchases effect
d. income effect
e. aggregate demand effect
A
Economics
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Suppose that the capital stock initially is 1000, the depreciation rate is 0.08, and investment is 220. This makes the net growth of the capital stock
A) 300. B) 237.6. C) 202.4. D) 140.
Economics
The shortage that results from rent control will be smaller
A. in the short run. B. in the long run. C. when demand is more inelastic. D. B) and C)
Economics