If the real interest rate were -7%, this is:
a. A clear sign that it is better to borrow than to lend.
b. Not clear sign that it is better to borrow than to lend because this decision depends on expected inflation.
c. Actually, it is impossible for the real interest rate to be -7% because the real interest rate can approach zero, but it can never be less than zero.
d. A clear sign that it is better to lend than to borrow.
.A
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Suppose that disposable income is $1,000 consumption is $700 and the MPC is 0.6. If the disposable income increases by $100, consumption and savings will equal which of the following?
A) $420/$280 B) $600/$400 C) $660/$320 D) $660/$440 E) $760/$340
When total revenue remain unchanged when there is a change in price, demand is
A) unit-elastic. B) inelastic. C) elastic. D) not related.