If the price level falls, the real value of a dollar
a. rises, so people will want to buy more.
b. rises, so people will want to buy less.
c. falls, so people will want to buy more.
d. falls, so people will want to buy less.
a
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Transactions costs are the
A) costs of using the Coase theorem. B) opportunity costs of conducting a transaction. C) external marginal costs of the externality. D) reason why taxes cannot affect the inefficiency resulting from an external cost. E) external costs when a firm pollutes.
Which of the following is true for the period from Independence to 1860?
(a) The system of indentured servitude died out because it was seen to be immoral and inconsistent with the Constitution. (b) The system of slavery flourished because the relative price of slaves fell consistently. (c) The system of wage labor flourished as immigrant labor poured into the newly opened western lands. (d) European immigrants typically shunned agricultural labor as their ticket to the good life.
The unbalanced development strategy relies on
a. the government broadening its time horizon b. economic dualism, that is, government and the private sector c. the balancing effect of foreign aid and investment d. investments creating new supply capacities, which create new demands, which stimulates investments in new supply capacities e. incentives created by income disparity
A serious burden of a budget deficit and an increase in the national debt comes on the supply side because large budget deficits
a. discourage consumption and therefore lead to production cutbacks. b. lead to lower interest rates and therefore to excessive optimism by consumers and businesspeople. c. discourage investment and therefore may reduce the growth of the nation's capital stock. d. discourage foreign investment and therefore limit employment opportunities.