As more workers are hired to harvest grapes in a vineyard, the fields become overcrowded. As a result, the marginal product of labor is likely to diminish
a. True
b. False
Indicate whether the statement is true or false
True
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The long-run neutrality of money refers to the fact that in the long run, monetary policy
A) changes only real output. B) changes only the real interest rate. C) changes both real output and the real interest rate. D) has no effect on either real output or the real interest rate.
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and current international transactions become more negative (or less positive). b. The quantity of real loanable funds per time period rises, and current international transactions become more negative (or less positive). c. The quantity of real loanable funds per time period and current international transactions remain the same. d. The quantity of real loanable funds per time period rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
What is the source of the supply of loanable funds in the open-economy macroeconomic model?
In the analysis of educational spending on outcomes, it is generally the case that
A. spending on raising teacher salaries and reducing class size matters. B. only the spending on reducing class size matters. C. neither higher salaries nor reduced class size matters. D. only the spending devoted to raising teacher salaries matters.