The steeper the planned investment schedule (curve)
A) the larger is the crowding-out effect.
B) the smaller is the crowding-out effect.
C) the larger is the change in planned investment as a result of changes in the interest rate.
D) the smaller is the change in money demand as a result of changes in the interest rate.
Answer: B) the smaller is the crowding-out effect.
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In a two-period model with default, if the nation defaults on its debts in the future period
A) there are no consequences. B) it bears a cost v. C) collateral is seized. D) it faces a higher interest rate.
Robert, as a baker has to work long hours and doesn't get much time with his family. Robert's boss, in order to keep Robert working at the bakery would soon have to offer him a
a. positive compensating differential b. negative compensating differential c. nothing can make Robert stay d. none of the above
Comparable worth is the principle that:
a. goods and services priced the same have about the same worth. b. the wage rate equals the value of productivity. c. men and women should be paid comparably. d. employees who perform comparable jobs should be paid the same wage.
Whenever the market price for crops is below the Commodity Credit Corporation (CCC) loan rate, the government will end up buying surplus crops.
Answer the following statement true (T) or false (F)