Holding other things constant, an increase in the use of capital in production would
A) increase the marginal productivity of labor.
B) decrease, but not proportionately, the marginal productivity of labor.
C) not change the marginal productivity of labor.
D) decrease proportionately the marginal productivity of labor.
Answer: A
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Since the mid-1980s, the primary indicator of monetary policy has been
a. movement of short-term interest rates. b. the growth rate of real government expenditures. c. the growth of the M1 money supply. d. changes in the nominal (dollar) size of budget deficits or surpluses.
According to non-Keynesians, how will an increase in government spending financed by borrowing during a recession affect recovery?
a. Higher future taxes and interest rates will be required to finance the larger debt and this will weaken the recovery. b. Repayment of the debt can always be shifted to the future, making it possible to keep tax rates low and thereby strengthen the recovery. c. Higher interest payments will increase future government spending, and thereby promote a stronger the recovery. d. The increase in government spending will exert a multiplier effect on the economy, leading to a stronger recovery.
Securities dealers that trade stocks and bonds outside exchanges comprise the
A) NASDAQ market. B) outlet market. C) foreign exchange market. D) over-the-counter market.
When the ratios of the marginal utility to the price of goods are equal, you're maximizing utility.
Answer the following statement true (T) or false (F)