Question

In: Economics

Please explain if the following statements are true, false orboth:a) Increased investments decrease national...

Please explain if the following statements are true, false or both:

a) Increased investments decrease national savings.

b) Monetary neutrality is: "When money supply changes, relative price doesn't change either"

c) In monopoly, marginal revenue is always lower than the price.

d) Deadweight loss due to taxation is greater when supply and demand elasticity is greater

Solutions

Expert Solution

A) False

Investment is directly proportional to National income

Hence if national i come increases, investment also increases.

B) False

When money supply changes, according to money neutrality the price will also change.It only affect nominal variables.

C) True

Yes in monopoly, there will be price effect where marginal revenue will be lowrr than price

D) True

Deadweight loss due to taxation is greater when supply and demand elasticity is greater is a true statement.

Deadweight loss is directly proportional to elasticity of demand and supply.


Related Solutions

Which of the following statements are true and which are false? Evaporation is used to decrease...
Which of the following statements are true and which are false? Evaporation is used to decrease the weight and volume of a liquid product. Concentration of a liquid food increases the shelf life of the food since it decreases the water activity. Falling film evaporators are not suitable for heat sensitive products. Agitated film evaporators are suitable for viscous liquids. Fruit juices are concentrated in falling film evaporators. Gelatin is concentrated in agitated film evaporators. Tomato juice is concentrated in...
Which one of the following statements is true? Please explain each choice: why it is true/false....
Which one of the following statements is true? Please explain each choice: why it is true/false. (a) The Burgers vector of an edge dislocation is normal to the dislocation line and normal to the slip plane. (b) The Burgers vector of a screw dislocation is normal to the dislocation line and parallel to the slip plane. (c) When a screw dislocation enables slip in a single crystal, the dislocation line remains in the slip plane. (d) BCC crystals do not...
Please state whether each of the following statements is TRUE or FALSE, and then explain your...
Please state whether each of the following statements is TRUE or FALSE, and then explain your choice briefly. Please start your answer by writing either TRUE or FALSE. Answers without that clear statement at the beginning, and with excessively long (more than 2-3 short sentences) explanations will be penalized. Banks can still influence the money supply if they are required to hold all deposits in reserve. In the months of November and December, people in the U.S. hold a larger...
Indicate if the following statements are true or false. For false statements, explain why the statement...
Indicate if the following statements are true or false. For false statements, explain why the statement is false or give the correct answer.(1 point each) 6. A simple attribute can be broken down into smaller components. 7. The relationship between a weak and strong entity is called a multiple relationship. 8. An identifier is a combination of two or more attributes from two tables. 9. A unary relationship must have mandatory many cardinality on both sides. 10. If two entities...
True, False, or Uncertain Explain why each of the following statements is True, False, or Uncertain...
True, False, or Uncertain Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. A6-5. Suppose a $1000 bond pays annual “coupon interest” equal to 10% and matures in two years. If the yield on bonds with similar risk characteristics is 3%, the price of this bond today is greater than $1000. A6-6. Suppose the Bank of...
True, False, or Uncertain Explain why each of the following statements is True, False, or Uncertain...
True, False, or Uncertain Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. A6-1. An economy with a recessionary gap will never return to long run equilibrium without policy intervention. A6-2. In a closed economy, investment will equal the sum of private saving and government saving. A6-3. An increase in private saving for a closed economy...
Which of the following statements are TRUE or False. (Explain why it’s true or false?) Subtracting...
Which of the following statements are TRUE or False. (Explain why it’s true or false?) Subtracting a positive number from a negative number always gives you a negative number. Subtracting two negative numbers always gives you a negative number. Subtracting a - b is the same as adding a + (-b). A positive number minus a negative number is always a positive number. The difference of a number and its opposite gives you zero. Zero minus a number is the...
True/False-Explain. Respond to the following statements by explaining why they are true or false. For each...
True/False-Explain. Respond to the following statements by explaining why they are true or false. For each statement, a complete and correct explanation is worth 10 points. No partial credit will be awarded for stating TRUE or FALSE without explanation. 1. [10 pts] True or False, The gravity model is a perfect fit to data on international trade flows. 2. [10 pts] True or False, In the specific factors model, wages are equal across countries but can vary across industries. 3....
Are the following statements true or false? Explain in each case.
Are the following statements true or false? Explain in each case.a. “Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods.”b. “Certain very talented people have a comparative advantage in everything they do.”c. “If a certain trade is good for one person, it can’t be good for the other one.”
For each of the following statements, please indicate if it is TRUE or FALSE. Then provide...
For each of the following statements, please indicate if it is TRUE or FALSE. Then provide a justification or explanation of your answer to each question in less than 30 words. The golden-rule state for an economy with constant population but where the effective supply of labour grows at a steady rate refers to a condition such that consumption of the total population is maximised. The equation, Y = MV/P, implies that, if the velocity (V) does not change when...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT