In the Classical system, the interest rate is determined by all of the following except
A) the thriftiness of the public.
B) the money supply.
C) the productivity of capital.
D) investment.
B
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Recessionary gaps are most likely to be accompanied by
A. inflation. B. inventory reductions. C. unemployment. D. expanding output.
A decline in the price of resource A will:
A. increase the demand for complementary resource B. B. shift the demand curve for A to the left. C. shift the demand curve for A to the right. D. reduce the demand for complementary resource B.
Government imposed price controls often lead to
A) illegal trades of the good. B) the most efficient use of resources. C) the equilibrium solution in terms of price and quantity. D) maximization of profits.
Constant returns to scale are illustrated by
A) a downward sloping long-run average cost curve. B) a horizontal long-run average cost curve. C) an upward sloping long-run average cost curve. D) a long-run average cost curve that is shaped like an upside down U.