An increase in spending increases nominal and real wages, but as prices rise:
A. nominal wages begin to fall.
B. both nominal and real wages begin to rise.
C. real wages begin to fall.
D. neither nominal nor real wages are affected.
Ans: C. real wages begin to fall.
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Indicate whether the statement is true or false
Residential housing consumption is not affected by U.S. personal income taxes.
A. True B. False C. Uncertain
From the Monetarist perspective, the aggregate supply curve is
A) vertical. B) horizontal. C) sensitive to changes in the money supply. D) sensitive to changes in consumption.
Which of the following is true?
a. The stock market provides investors with an opportunity to own a fractional share of the firm's future profits. b. A new stock issue is often an excellent way for a firm to raise funds for future expansion. c. Changes in stock prices provide information about what investors think of various business decisions. d. All of the above are true.