Say's Law
a. is valid only in a simple economy without financial markets
b. led economists during the 1920s to encourage the government to adopt flawed economic policies that led to the Great Depression
c. assures us that in the aggregate, firms are able to sell their output so that full employment can be sustained
d. tells us that in the long run, markets clear
e. tell us that firms must carefully monitor consumer spending and saving in order not to produce more than consumers are willing to purchase
C
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The consumption schedule shows the relationship of household consumption to the level of
A. the marginal propensity to consume. B. investment. C. disposable income. D. saving.
In the linear probability model, the interpretation of the slope coefficient is
A) the change in odds associated with a unit change in X, holding other regressors constant. B) not all that meaningful since the dependent variable is either 0 or 1. C) the change in probability that Y=1 associated with a unit change in X, holding others regressors constant. D) the response in the dependent variable to a percentage change in the regressor.
Other things being equal, an increase in the rate of interest causes
a. an upward movement along the demand for money curve. b. a downward movement along the demand for money curve. c. a rightward shift of the demand for money curve. d. a leftward shift of the demand for money curve.
The NCAA rule governing the limits on the amount of a scholarship a college can offer an athlete is an effective price floor
Indicate whether the statement is true or false