If the legal minimum wage is set above the equilibrium wage rate
A. employment will tend to be lower than it otherwise would have been.
B. employment will tend to be higher than it otherwise would have been.
C. the level of employment will not be affected.
D. there is no way to determine how the level of employment would be affected.
A. employment will tend to be lower than it otherwise would have been.
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Pooling of risk occurs when depository institutions
A) make assets more liquid. B) specialize in loaning only to good borrowers. C) bring lenders together. D) lend to a variety of different borrowers.
The ratio of a change in consumption to a change in disposable income is the:
a. consumption function. b. propensity to consume. c. average propensity to consume. d. extra propensity to consume. e. marginal propensity to consume.
Normative analysis focuses on statements that can be tested against real-world data
a. True b. False Indicate whether the statement is true or false
Which of the following lines has a slope equal to the marginal propensity to consume?
a. The demand for loanable funds curve b. The labor demand curve c. The consumption function d. Inventory line e. The 45-degree line