Suppose an economy experience a 4% increase in each of the following variables: N, K, and H (human capital). Given this information, we know with certainty that
A) Y will increase by more than 4%.
B) Y will increase by exactly 4%.
C) Y will increase by less than 4%.
D) Y will increase by less than 12% but by more than 4%.
E) none of the above
D
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The only type of business that faces limited liability is a corporation
Indicate whether the statement is true or false
The assumption of diminishing returns in the Heckscher-Ohlin model means that, unlike in the Ricardian model, it is likely that
A) countries will not be fully specialized in one product. B) countries will benefit from free international trade. C) countries will consume outside their production possibility frontier. D) comparative advantage will not determine the direction of trade. E) global production will decrease under trade.
Consumer surplus is
A) the total difference between the total amount that consumers actually pay for an item and the total amount that they would have been willing to pay. B) the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item. C) the total difference between the total amount that consumers would have been willing to pay for an item and the total amount that they actually pay. D) the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item.
According to the interest-rate-based monetary policy transmission mechanism
A) an increase in money supply will increase interest rates. B) an increase in money supply will decrease interest rates. C) a decrease in money supply will decrease interest rates. D) a decrease in money supply will not change interest rates.