An increase in the interest rate will
A. increase the demand for money alone.
B. change neither the demand nor the supply of money; rather it will only affect the quantity demanded and quantity supplied.
C. decrease the demand for money and increase the supply of money.
D. increase the demand for money and decrease the supply of money.
Answer: B
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Full employment is the level of unemployment that occurs
A) when everyone looking for a job has a job. B) when cyclical unemployment is zero. C) when frictional and structural unemployment are zero. D) when frictional, structural, and cyclical unemployment are zero. E) None of the above answers is correct.
What are some of the strategies that have been proposed to mitigate global warming at a macro level?
What will be an ideal response?
A positive externality is shown by a marginal social benefit (MSB) curve that is
A) above and to the right of the demand curve for the good that generates it. B) below and to the left of the demand curve for the good that generates it. C) above and to the left of the supply curve for the good that generates it. D) below and to the right of the supply curve for the good that generates it. E) positively related to both the supply curve and the demand curve for the good that generates it.
Imagine that you are on the economic development council of an LDC. You propose that the government invest in an herbal shampoo factory to make use of your country's abundant herbs. What type of development strategy is this? How do you expect it to help your country advance?