A decrease in income ________
A) lowers money demand for any given interest rate
B) lowers interest rates ceteris paribus
C) leads to a leftward shift of the money demand curve
D) all of the above
E) none of the above
D
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Throughout 2008, inflation and the real interest rate declined together. The cause is a combination of ________
A) monetary policy easing and declining autonomous spending B) declining autonomous spending and movement along a fixed MP curve C) monetary policy tightening and inversion of the MP curve D) increased government spending and movement along a fixed MP curve E) none of the above
Which of the following is most likely to have declining opportunity costs?
A) a delivery van B) an apartment building in Manhattan C) an acre of land in San Francisco D) a park in downtown London
A large corporation's profit objective may not be profit or wealth maximization, because
A) stockholders have little power in corporate decision making. B) management is more interested in maximizing its own income. C) managers are overly concerned with their own survival and may not take all prudent risks. D) All of the above
A worker's contribution to the firm's revenue is measured directly by the worker's: a. value of marginal product
b. marginal product multiplied by his/her wage. c. marginal product minus his/her wage. d. contribution to total output.