The logic of the wealth effect begins with a change in the price level changing the interest rate.
a. true
b. false
Ans: b. false
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A decrease in the price of VCRs will increase demand for video cassettes.
Answer the following statement true (T) or false (F)
Table 7-4 ? 6 346 490 600 692 775 846 ? 5 316 448 548 632 705 775 ? 4 282 400 490 564 632 692 CAPITAL 3 245 346 423 490 548 600 ? 2 200 282 346 400 448 490 ? 1 141 200 245 282 316 346 ? 0 1 2 3 4 5 6 ? LABOR ? ? ? ? ? Table 7-4 shows a production relationship. The cost of one day of labor is $65 and the product price is $1 per unit. How much will the labor input increase if the capital stock were increased from 3 to 4?
A. From 3 to 4 B. From 4 to 5 C. From 4 to 6 D. Stays the same
Examples used in the text to illustrate "competition among the few" include all of the following industries except
a. cereal b. airline c. fish d. automobile e. baby food
The aggregate demand curve shows the:
a. Direct relationship between the price level and real GDP produced b. Inverse relationship between interest rates and real GDP produced c. Inverse relationship between the price level and real GDP purchased d. Direct relationship between real-balances and real GDP purchased