When financial markets and institutions are not efficient in matching savers and borrowers,
A) interest rates fall, which discourages saving even further.
B) interest rates fall, which discourages investment even further.
C) resources are lost.
D) investment rises.
C
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An economy that trades with the rest of the world is a(n) ________.
A. command economy B. closed economy C. open economy D. trade economy
Diversifying
a. increases the standard deviation of the value of a portfolio indicating its risk has increased. b. increases the standard deviation of the value of a portfolio indicating its risk has decreased. c. decreases the standard deviation of the value of a portfolio indicating its risk has increased. d. decreases the standard deviation of the value of a portfolio indicating its risk has decreased.
A change in wages creates a substitution and income effect on the quantity of labor supplied.
Answer the following statement true (T) or false (F)
The main reason for the decline in real wages in the 1970s and 1980s was
A. our high rate of productivity growth. B. our low rate of productivity growth. C. that so many housewives joined the labor force. D. people couldn't find jobs.