Which of the following is consistent with Keynes's view of Say's law?
A) Saving increases by $3 billion, consumption falls by $3 billion, and investment rises by $3 billion.
B) Consumption rises by $3 billion and saving rises by more than $3 billion.
C) Saving rises by $3 billion, consumption falls by $3 billion, and investment rises by something less than $3 billion.
D) Saving rises by $3 billion, consumption falls by $3 billion, and investment rises by $6 billion.
E) none of the above
C
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In the late 1980s, the health benefits of oat bran were widely advertised. If the price of oats increased 50%, causing the quantity of oats supplied to increase by 40%, then the price elasticity of supply was
A) 1.25. B) -1.25. C) -0.80. D) 0.80.
If the price of a car in the United States is $22,000, and the exchange rate between the dollar and the Japanese yen falls from 125 yen to 105 yen per dollar, then the price of the American car in Japan will
A. remain the same. B. rise. C. fall. D. be irrelevant, because the Japanese government will impose restrictions on imports from the United States.