The claim that increases in the growth rate of the money supply increase nominal interest rates but not real interest rates is known as the
a. Friedman Effect.
b. Hume Effect.
c. Fisher Effect.
d. the inflation tax.
c
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A firm should hire more workers to increase its profits if
A) the marginal product of labor is greater than the wage the firm will pay these workers. B) there is enough capital and other resources for the workers to use. C) the demand for labor is elastic. D) the wage rate is less than the marginal revenue product of labor.
In the United States, major league baseball is exempt from antitrust laws. Before 1975, the baseball team owners agreed to hold an annual draft of amateur baseball players
Once the players were drafted and signed by a team, they were effectively tied to that team for life. This allowed baseball owners to operate like ________ in the market for player services. A) perfect competitors B) monopolistic competitors C) a monopsonistic cartel D) a monopoly
Because of diminishing returns, a factor in abundant supply has a
a. high marginal product and a high rental price. b. high marginal product and a low rental price. c. low marginal product and a high rental price. d. low marginal product and a low rental price.
The earnings of a resource include both opportunity cost and economic rent, if the supply curve of a resource is downward sloping
Indicate whether the statement is true or false