What are the factors that determine the amount of money an individual desires to hold?
What will be an ideal response?
Three main factors: first, the expected return the asset offers compared with the returns offered by other assets; second, the riskiness of the asset's expected return; and third, the asset's liquidity.
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An increase in the interest rate causes the MRP of a resource to fall
a. True b. False Indicate whether the statement is true or false
If the MPC is 4/5, the multiplier is 5/4
a. True b. False Indicate whether the statement is true or false
Legal entitlement to scientific discoveries, inventions, innovations and intellectual property
A) results in an equal distribution of income and profits. B) protects production on the basis of tradition, social customs and habits. C) encourages technological advancements. D) reduces the incentive to invest in research and development.
If, with one unit of labor, the U.S. can produce 20 units of computer software and 10 units of computer hardware, and China can produce 6 units of software and 6 units of hardware, then trade can make
A. both better off. B. the U.S. better off but not China. C. neither better off. D. China better off but not the U.S.