Refer to the above figure. Perfect income equality is shown by
A) the horizontal axis.
B) the vertical axis.
C) curve A.
D) curve D.
C
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Labor demand depends on the interest rate because
A) household savings depend on the interest rate. B) firms discount future profits. C) of Ricardian equivalence. D) Labor demand actually does not depend on the interest rate.
What is a primary determinant of the asset demand for money? I. the interest rate II. the opportunity cost of holding money III. the supply of money
A) I only B) III only C) both I and II D) both II and III
The so-called ratchet effect refers to the characteristic in the economy where product prices, wages, and per-unit production cost are flexible when:
A. AD decreases but not when AD increases B. AD increases but not when AD decreases C. AS increases but not when AS decreases D. AD shifts but not when AS shifts
A defined benefit plan provides retirees income that varies with the market interest rate but continues for a defined number of years.
Answer the following statement true (T) or false (F)