In Keynes's view, an excess quantity of money supplied causes people to:
a. sell bonds and the interest rate rises.
b. buy bonds and the interest rate falls.
c. buy bonds and the interest rate rises.
d. increase speculative balances.
b
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Refer to Table 17-1. Suppose the output price is $3. If the firm represented in the table is maximizing its profit by hiring six workers, what is the wage rate?
A) $120 B) $65 C) $40 D) There is insufficient information to answer the question.
Since 1973, the average annual growth rate of real GDP per person in the United States has been slower than the average annual growth rate in
A) Germany and Canada. B) France and Italy. C) Japan and United Kingdom. D) France and Canada.
The slope of an indifference curve reveals:
A) that preferences are complete. B) the marginal rate of substitution of one good for another good. C) the ratio of market prices. D) that preferences are transitive. E) none of the above
Interest is the payment for the use of
a. borrowed funds. b. natural resources. c. labor. d. any factor of production.