In a binding situation
A. only changes in the price level change the interest rate.
B. only changes in the Z factors change the interest rate.
C. changes in neither the price level nor in the Z factors change the interest rate.
D. the interest rate is always negative.
Answer: C
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Assume that after the fifth worker, each additional worker a firm hires is less productive than the previous worker. Based on this information, we can conclude that beyond the fifth worker, the average product of labor will:
A) increase. B) stay the same. C) decrease. D) cannot be determined without additional information.
The money market rate observed most closely by the Open Market Account Manager is the
A) Treasury bill rate. B) commercial paper rate. C) discount rate. D) federal funds rate.
Which of the following is a primary product?
a. Tomato sauce b. Chocolate bars c. Salt d. Breakfast cereal e. A desk
If Iceland can produce fish with fewer resources than Greenland, we have evidence of
a. specialization b. geographic advantage c. comparative advantage d. absolute advantage e. free trade