When an individual's wage rises, the income effect tends to
a. increase hours worked.
b. decrease hours worked.
c. leave hours worked unchanged.
d. it is impossible to predict what will happen to hours worked.
b
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Bank accounts and bonds are examples of money-fixed assets.
Answer the following statement true (T) or false (F)
One advantage of fiscal federalism is that its decentralized nature _____
a. allows for more rigid rules b. gives voters more choice c. creates thousands of bureaucracies d. forces local governments to collude with one another
The delay between when a problem is recognized and when policy action is taken is referred to as the
A) recognition lag. B) action lag. C) effectiveness lag. D) policy lag.
Calculate the discounted value of $2,875 to be received from a bank a year later at an interest of 15 percent per annum
a. $2,625 b. $2,075 c. $2,015 d. $2,500