The real balances effect predicts that higher prices:
a. make people worse off by reducing the value of their wealth, leading them to save more and spend less.
b. make people worse off by reducing the value of their wealth, leading them to save less and spend more.
c. make people better off by increasing the value of their wealth, leading them to save less and spend more.
d. increase borrowing, leading to higher interest rates and less investment.
e. make domestic goods relatively more expensive, increasing the demand for domestic goods and decreasing the demand for foreign goods.
a
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Systemically important financial institutions are:
A) banks that are owned and run by the government. B) large banks that have become a large market power. C) all banks whose value of liabilities exceeds its value of assets. D) all banks whose value of assets exceeds its value of liabilities.
A change in the price level brings a ________ the aggregate supply curve, NOT a ________ the aggregate supply curve
A) vertical displacement of; change in the slope of B) change in the slope of; horizontal displacement of C) shift in; change in the slope of D) movement along; shift in E) shift in; movement along
Who among the following is the most likely to invest in human capital?
A) A person with a low rate of time preference B) A person with a high rate of time preference C) A person with no time preference D) None of the above.
The marginal revenue product is
a. the marginal product of labor divided by the output price. b. the marginal product of labor minus the output price. c. the additional revenue produced by one more unit of output. d. the marginal product of labor multiplied by the output price.