If businesses expect the economic activity to expand
A. the planned investment function relating investment to the interest rate will shift to the left.
B. the planned investment function relating investment to the interest rate will shift to the right.
C. the planned investment function relating investment to the interest rate will steepen.
D. the planned investment function relating investment to the interest rate will remain unchanged, but will move downward along the curve.
Answer: B
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Based on the data in the table, this Application addresses the economic concept of
A) the real-nominal principle. B) the principle of diminishing returns. C) the principle of voluntary exchange. D) the marginal principle.
A bank's excess reserves are the fraction of a bank's deposits held at the Federal Reserve
Indicate whether the statement is true or false
A study of the effects of the minimum wage on employment of low-skilled workers estimated the price elasticity of demand for low-skilled workers is -0.75
Suppose that the government is considering raising the minimum wage from $7.25 per hour to $7.75 per hour. Based on this information, calculate the percentage change in the employment of low skilled workers. Use the midpoint formula.
With free entry:
A. there is a known and limited number of potential suppliers that can produce a good in the long run. B. there is an unlimited number of firms that can produce a good in the long run. C. the long run market supply curve is vertical at the market quantity. D. the long run market demand curve is horizontal at the market price.