Keynes argued that the downward slope of the demand for money curve depends on the:
A. equation of exchange.
B. rate of interest.
C. federal funds rate.
D. discount rate.
Answer: B
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A quota is a
A) quantitative restriction on an import imposed by the importing country. B) quantitative restriction on an import imposed by the exporting country. C) restriction on how much a customer can buy of a scarce good imposed by the seller. D) tax that is imposed on a good when it crosses an international boundary. E) trade barrier that does not harm domestic consumers of the good or service.
A reduction in the minimum wage will tend to cause which of the following?
A) a reduction in poverty B) an increase in the number of workers employed C) an increase in the quantity supplied of labor D) a reduction in the quantity demanded of labor
Which of the following is true?
a. In a competitive capital market, private investors have a strong incentive to evaluate projects carefully and allocate their funds toward those projects expected to yield the highest rates of return. b. In a competitive environment, profitable investment projects will tend to increase the wealth of the nation. c. When investment funds are allocated by governments (rather than capital markets), political clout rather than the expected rate of return will generally determine which projects are undertaken. d. All of the above are correct.
"Many Americans have been hurt by recent economic events. Raising the minimum wage is the best policy to improve the wages and employment opportunities of Americans." This argument is
a. correct because a higher minimum wage will increase total income which will stimulate aggregate demand and employment. b. incorrect because while some people will receive higher wages, others will experience less employment and fewer training opportunities. c. incorrect because the government has too big a deficit to pay for the increase in the minimum wage. d. correct because most minimum wage workers are household heads trying to earn enough to support their family.