In Figure 4-5 above, the money market is in equilibrium
A) at points B, C, and E.
B) at points A and E.
C) only at point E.
D) at points E and D.
E) at points A, B, E, and C.
A
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From the beginning of the 1990s to the year 2000, investment spending as a share of U.S. GDP has tended to
A) decrease. B) remain the same. C) fluctuate wildly. D) increase.
Wage differentials between occupations can be explained by all of the following except
A) the relative differences between demand and supply in various occupations B) the fact that some occupations are more desirable than others. C) the market power of different employers. D) the fact that some occupations require higher levels of human capital than others.
Which of the following is NOT a proposition of the Heckscher-Ohlin model?
A) A country has a comparative advantage in the production of that commodity which uses more intensively the country's more abundant resource. B) The effect of international trade is to tend to equalize factor prices between the trading nations. C) If Mexico is an unskilled labor abundant country, then Mexico has a comparative advantage in the production of goods that use unskilled labor more intensively. D) If the United States is a skilled labor abundant country, then the United States has a comparative advantage in the production of goods that use skilled labor more intensively. E) Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur.
By the accelerator hypothesis, if a firm's actual sales jump in one period to a higher maintained level, that firm's replacement investment
A) also jumps in one period to a higher maintained level. B) gradually drifts upward to a higher maintained level. C) jumps upward and then falls back to zero. D) jumps upward and then falls back part of the way.