In the classical theory of employment, a decline in the rate of interest will
A. decrease saving and investment.
B. decrease saving and increase investment.
C. increase saving and decrease investment.
D. increase saving and investment.
B. decrease saving and increase investment.
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The addition of government to the circular-flow model illustrates that government
A. purchases goods in the product market. B. provides services to businesses and households. C. purchases resources in the resource market. D. does all of these.
List three reasons why nominal wages can be sticky in the short run
What will be an ideal response?
________ occurs when a person acquires more detailed knowledge and develops more memory and experience, has contacts with others in the same field of endeavor
a. Expertise b. Novice ability c. Intermediate effort d. Prodigy
All other things unchanged, the velocity of money will _______ if the quantity of money demanded _______.
A. decrease; decreases B. increase; increases C. increase; decreases D. fall to zero; increases