The liquidity trap is the _____ section of the demand curve for money.
A. flat section of the speculative
B. flat section of the precautionary
C. vertical section of the speculative
D. vertical section of the precautionary
A. flat section of the speculative
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What is determined by the intersection of the market supply of labor and the market demand for labor?
a. equilibrium wage b. equilibrium employment level c. both equilibrium wage and equilibrium employment level d. equilibrium marginal revenue product
What policy tool of the Federal Reserve relies on bank borrowing to be effective?
A. Open-market operations B. Check collection C. The reserve ratio D. The discount rate
What approach to fairness argues in favor of government policies that redistribute income so that there is more equality of income?
What will be an ideal response?
Over the past several decades, low-productivity and high-productivity workers in the US and other countries have tended to invest in their own human capital by completing more years of college than earlier generations
Which of the following reasons does NOT help to explain this trend? A) The cost of education for low-productivity workers has declined due to the emergence of online and other nontraditional programs. B) The earnings gap between workers with and without education has grown larger over time. C) The cost of education for high-productivity workers has increased over time. D) The benefit associated with increased education has increased over time.