In response to an increase in total factor productivity
A) both the substitution effect and the income effect suggest that hours worked should increase.
B) the substitution effect suggests that hours worked should increase, while the income effect suggests that hours worked should decrease.
C) the substitution effect suggests that hours worked should decrease, while the income effect suggests that hours worked should increase.
D) both the substitution effect and the income effect suggest that hours worked should decrease.
B
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Sheena gets her paycheck on the first day of every month and spends it over the month to purchase various goods and services. What are the functions that money is performing in this case?
What will be an ideal response?
The immediate effect of a bank's purchase of U.S. government securities from the Fed is a(n): a. decrease in the bank's assets
b. increase in the bank's assets. c. decrease in the Fed's assets. d. increase in the Fed's assets. e. decrease in both the bank's and the Fed's assets.
The amount of money a lender requires for the use of funds is called:
A. interest. B. principal. C. internal rate of return. D. present discounted value.
When a binding price floor is imposed on a market for a good, some people who want to sell the good cannot do so
a. True b. False Indicate whether the statement is true or false