What is the relationship between interest rates and demand for money?
(A) As interest rates decrease, demand for money increases.
(B) Interest rates and demand for money are unrelated.
(C) As interest rates increase, demand for money increases.
(D) Interest rates are determined by demand for money.
Ans: (A) As interest rates decrease, demand for money increases.
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According to the method of growth accounting, which of the following contribute to economic growth?
A) technological progress B) capital growth C) labor growth D) all of the above
Business executives who think the demand for their product is very elastic at the current price are assuming
A) the demand will become less elastic at a higher price. B) they will be able to sell more units at a higher price. C) they will sell fewer units but receive more dollars in sales revenue at a higher price. D) they will sell more units and receive more dollars in sales revenue at a lower price. E) they will sell more units but receive fewer dollars in sales revenue at a lower price.
Entry in a perfectly competitive market
A) shifts the market supply curve rightward. B) decreases the market price. C) shifts the market supply curve leftward. D) Both answers A and B are correct.
In a small Asian country, it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $600. Based on this information, what is the slope of the per-worker production function in this range?
A) 0.06 B) 6.6 C) 66.6 D) 666