Menu costs will:
A. Increase the amount of training of workers
B. Result in price wars between businesses
C. Increase the legal minimum wage
D. Make prices inflexible downward
D. Make prices inflexible downward
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Assume there are no investment projects that will produce an expected rate of return of 8% or more. There are, however, $2 billion worth of investment projects with an expected rate of return at 7%. There is an additional $2 billion for every drop of the interest rate by 1%. If the real interest rate is 3% in this economy, the cumulative amount of investment at the 3% or higher rate of return is
A. $10 billion. B. $4 billion. C. $6 billion. D. $8 billion.
The _____ measures the degree of association between two independent variables in an a distribution
a. expectation b. standard deviation c. correlation coefficient d. variance
The World Bank's view of the effectiveness of industrial policies in East Asia is that, in general, they
A) hindered growth. B) had little or no effect on growth. C) encouraged growth. D) are the main factor in the success of the East Asian economies.
In the traditional Keynesian model, an income tax cut raises real GDP because
A. consumption spending depends positively on after-tax income. B. consumption spending depends negatively on after-tax income. C. consumption spending is not related to after-tax income. D. of the crowding-out effects of taxes.