The interest rate effect operates through
A) labor supply.
B) government spending levels.
C) the purchasing power of individuals' checking accounts.
D) credit markets by changing borrowing costs.
D
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Classical economists tend to
A) support Say's law. B) see unemployment as a persistent economic problem. C) reject the equality of savings and investment. D) believe in Keynesian economics.
If a change in technology improves the marginal productivity of capital, the
a. supply of capital will increase b. supply of capital will decrease c. demand for loanable funds will increase d. demand for loanable funds will decrease e. supply of loanable funds will increase
Which of the following would NOT be expected to increase labor productivity?
A. Technological advance B. The acquisition of more education and training by the labor force C. An increase in the size of the labor force D. The realization of economies of scale
The field of political economy
a. applies the methods of political science to microeconomics. b. applies the methods of political science to macroeconomics. c. is relevant to the issue of how active government should be in economic matters. d. integrates psychological insights to better understand individual choices.