A change in a factor's price will have a greater effect on the quantity of the factor demanded the:
A. Smaller the change in the factor's price
B. Smaller the factor's share of total cost of production
C. More elastic is the demand for the product the factor helps to make
D. More inelastic is the demand for the product the factor helps to make
C. More elastic is the demand for the product the factor helps to make
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The conventional view among economists is that persistent budget deficits lead to ________ real interest rates and ________ private investment
A) higher; crowd in B) higher; crowd out C) lower; crowd in D) lower; crowd out
As defined by Thomas Schelling, a "strategic move" is
A) any strategy choice in a game. B) any strategy choice consistent with Nash equilibrium. C) any strategy choice in a sequential game. D) a strategy choice that influences the subsequent strategy choice of another player. E) a strategy choice that restricts the set of outcomes available to another player.
Each member of the Board of Governors of the Fed: a. is from the minority of the FOMC
b. can have twelve presidential appointments. c. is authorized to set reserve requirements by the Bank Acts of 1933 and 1935. d. serves one nonrenewable term. e. is elected by the member banks which own the Federal Reserve.
Which one of the following changes is consistent with a change in an economy's consumption function from C = $500 billion + 0.80Y to C = $700 billion + 0.80Y?
a. An increase in disposable income taxes. b. An increase in interest rates c. A decrease in permanent disposable income. d. An increase in wealth. e. An increase in savings.