Analysts have attempted to model the impact of monetary policy on net worth by emphasizing
A) the impact of lower interest rates on business spending on fixed investment.
B) the impact of lower interest rates on household spending on housing and durable goods.
C) the liquidity of balance sheet positions as a determinant of business and household spending.
D) the greater variability of business spending compared to household spending.
C
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An activity should be undertaken if the marginal benefit of the activity is greater than the marginal cost of the activity
Indicate whether the statement is true or false
How does a firm in monopolistic competition decide how much to produce and at what price to offer its product for sale?
What will be an ideal response?
Protectionism through _________ implementation makes imports more expensive for consumers and discourages imports.
a. quote b. tariff c. nontariff barrier d. standards
In the long run, foreign labor remains cheap when and if
a. it becomes highly efficient and competes successfully internationally. b. countries erect barriers to trade between poor countries. c. productivity increases more rapidly in poor countries than in rich countries. d. it remains inefficient compared to other countries' labor.