The classical economists argued that saving is matched by an equal amount of investment because of
A) wage flexibility.
B) price flexibility.
C) money flexibility.
D) interest rate flexibility.
E) b and c
D
You might also like to view...
The figure above shows a local lawn cutting service's demand for labor curve when the price of cutting an acre of lawn is $50 per acre
If the market wage is $300 per day, the firm will NOT hire a fourth worker because the fourth worker would create A) an economic loss and the firm would shut down. B) additional revenue that exceeds the worker's wage. C) additional revenue that exceeds the worker's value of marginal product. D) additional revenue that falls short of the worker's wage.
When banks operate to match savers and borrowers to increase the efficiency of financial markets, their role is known as
A) financial intermediary. B) lender of the last resort. C) financial market regulator. D) central bank.
What are some of the criticisms that have been levied on the World Bank and the International Monetary Fund concerning adverse selection and moral hazard?
What will be an ideal response?
An increase in the supply of money will:
a. reduce the rate of interest and, thereby, trigger an increase in current spending by households and businesses. b. reduce aggregate demand and real output. c. increase only the general level of prices. d. lead to a higher rate of unemployment.