Reading Assignment ch4 answers

Reading Assignment ch4 answers - Sheet1 Page 1 Q: Desired...

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Unformatted text preview: Sheet1 Page 1 Q: Desired national saving equals B. Cd + Id + G. C. Id + G. ANSWER: A Q: With no inflation and a nominal interest rate (i) of .03, a person can trade off one unit of current consumption for _____ u A. 0.97 B. 1.03 C. 0.03 ANSWER: B Q: When a person gets an increase in current income, what is likely to happen to consumption and saving? A. Consumption increases and saving increases. B. Consumption increases and saving decreases. C. Consumption decreases and saving increases. D. Consumption decreases and saving decreases. ANSWER: A Q: When a person receives an increase in wealth, what is likely to happen to consumption and saving? A. Consumption increases and saving increases. B. Consumption increases and saving decreases. C. Consumption decreases and saving increases. D. Consumption decreases and saving decreases. ANSWER: B A. fall B. fall C. rise D. rise ANSWER: B Q: The user cost of capital is given by the following formula, where pK is the real price of capital goods, d is the depreciation...
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Reading Assignment ch4 answers - Sheet1 Page 1 Q: Desired...

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