Refer to the information. If the real interest rate is 5 (percent), investment will be:
Answer the question on the basis of the following information for a private closed economy. where S is saving, I g is gross investment, i is the real interest rate, and Y is GDP.
A. $10 and the equilibrium GDP will be $75.
B. $15 and the equilibrium GDP will be $100.
C. $10 and the equilibrium GDP will be $120.
D. $15 and the equilibrium GDP will be $180.
A. $10 and the equilibrium GDP will be $75.
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Many people tend to buy multiple cars from the same manufacturer because
A) doing so reduces the asymmetric information problem; consumers have better knowledge of quality. B) doing so reduces the asymmetric information problem; consumers have better knowledge of prices. C) doing so doesn't change the asymmetric information problem but consumers have more information. D) doing so increases the consumers brand loyalty.
Define the following terms briefly and concisely and indicate their importance to the study of economics
a. entrepreneurship b. investment c. capital d. innovation e. discounting