The substitution effect makes workers want to work less when the wage increases
a. True
b. False
Indicate whether the statement is true or false
False
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A change in input prices will change the location of the firm’s budget line.
Answer the following statement true (T) or false (F)
About 1 out of every _____ black Americans is poor.
A. 12 B. 7 C. 4 D. 2
The reason that the commercial banking system can generate a multiple expansion or contraction of the money supply is that
A. banks hold reserves equal to their net worth. B. banks generally are required to hold surplus funds on deposit with other banks. C. most banks maintain a relatively large stock of reserves. D. banks are required to hold only a fraction of their deposit liabilities as reserves.
Deflation occurs when
A) there is a sustained increase in the price level. B) there is a one-time increase in the price level. C) there is a decline in the price level. D) there is a decrease in the expected rate of inflation.