The existence of inflation does which of the following?
A) facilitates the downward adjustment of real wages
B) reduces shoe-leather costs
C) reduces tax distortions
D) reduces the costs associated with money illusion
A
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If a firm's MRP of capital < MFC, the firm should
a. lower the interest rate b. decrease its quantity demanded of loanable funds c. increase its quantity demanded of loanable funds d. hire more labor e. raise the interest rate
Supporters of supply-side economics would be most likely to argue ________ government intervention to reduce inequality by focusing on its effects on ________.
A. in favor of; economic growth B. in favor of; politics C. against; fairness D. against; economic growth
The relationship of dead capital to inefficient production is
A. that outdated equipment will lead to inefficient production. B. nonexistent since the capital is already dead. C. that without clear ownership it is not possible to sell or transfer a resource so that it can be used efficiently. D. that when the dead capital is replaced by more technologically advanced capital, economic growth occurs.
Explain how bank regulators seem to face a bit of a paradox regarding preventing monopoly power by banks and spurring competition.
What will be an ideal response?