Borrowing is like:
A. selling the right to use your money for a time.
B. buying the right to use someone else's money.
C. selling the right to use someone else's money.
D. buying the right to use your money for a time.
B. buying the right to use someone else's money.
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The most significant factor enabling unions to negotiate increased wages for its members is likely: a. that unions increase the demand for labor
b. that unions decrease the supply of labor in the union sector. c. that unions increase the marginal product of labor. d. that unions increase the supply of labor in the union sector.
If the Consumer Price Index (CPI) decreases from 100 to 50 and the nominal wage decreases from $200 to $50, what is the change in the real wage in terms of the beginning year's dollars?
a. +$200 b. -$100 c. +$50 d. -$200 e. +$250
How does an open market purchase by the Fed affect the level of bank reserves and the interest rate? Illustrate the interest rate effect by drawing the appropriate graph
A laissez-faire economy has
A. very little government regulation of the economy. B. rules that promote social equality. C. a centrally planned economy. D. a large amount of government regulation.