The optimal hiring rule is to employ labor up to the point where:
a. wage = MP.
b. wage = MR.
c. wage = MRP.
d. wage = MFC.
c
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"A shortage in the loanable funds market occurs when the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded." Explain why this statement is correct or incorrect
What will be an ideal response?
The 1990-91 recession was caused by a Federal Reserve policy change designed to minimize the adverse economic effects of the Gulf War
a. True b. False
Initially, policy makers were not concerned about the financial crisis because:
A. fiscal policy would kick in to stabilize the economy. B. banks and other financial institutions had convinced policy makers that they would take care of any type of crisis. C. no other comparable crisis had happened before in history. D. conventional economic theory was telling them they did not have to worry about such an event occurring.
The quantity theory of money and prices assumes
A. velocity is increasing at a constant rate. B. the price level is constant. C. the price level is increasing at a constant rate. D. velocity is constant.