The slope of the LM curve will be steeper the __________ is the income-sensitivity of the demand for money and the __________ is the interest-sensitivity of the demand for money
A) less; less
B) less; greater
C) greater; less
D) greater; greater
C
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Which of the following is most likely to restore an economy to full employment, if it is operating below full employment due to a decrease in net exports?
A) Devaluation of the domestic currency B) A decrease in the demand for goods and services in the economy C) A decrease in investment in the economy D) An increase in the interest rate
All of the following actions are potential rule -of-reason violations except which one?
A) an agreement with a competitor firm to adjust output levels B) an exclusive dealings contract with a customer C) an agreement with a customer about the resale price the customer will charge for the product D) a tying sale with a customer
M1 is considered ___________ measure of money compared to M2.
A. a more legitimate B. a less legitimate C. just as legitimate a D. a more stable
Public choice theorists assert that persons who change jobs from, say, a government position to a business position, sometimes alter their work behavior and attitudes because
A) they want to fit in and be liked by their fellow workers. B) they are acting rationally by weighing the costs and benefits of certain behavior in different work settings. C) they feel that if they change jobs, they should also change their behavior. D) their new boss tells them it is in their best interest.