The natural rate of interest is the rate
A) which equates saving and investment under any employment condition.
B) which equates saving and investment with acceptable, but low, unemployment.
C) which equates saving and investment at an unemployment rate of 5 percent or less.
D) which equates saving and investment at full employment.
D
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The adage, "There is no such thing as a free lunch," means
a. even people on welfare have to pay for food. b. the cost of living is always increasing. c. people face tradeoffs. d. all costs are included in the price of a product.
If the reserve ratio is 0.08, the money multiplier is:
A. 8.0. B. 12.5. C. 1.0. D. 10.5.
Which of the following is not a determinant of the price elasticity of demand?
A. The number of substitute goods available. B. The time frame-whether it is in the short run or long run. C. The share of a consumer's budget. D. The amount of income the consumer has.
The common measure of wealth used in calculating the distribution of wealth includes
A. human capital. B. financial assets. C. workers' claims on private pension funds. D. the amount an individual will not receive during retirement.