A binding minimum wage tends to
a. cause a labor surplus.
b. cause unemployment.
c. have the greatest impact in the market for teenage labor.
d. All of the above are correct.
d
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If asset A is a risky asset yielding 10 percent and asset B is a riskless asset with the same maturity with a yield of 8 percent, investors would
A) prefer asset A. B) prefer asset B. C) be indifferent between the two assets. D) None of the above.
When investors buy more capital goods because the interest rates have fallen, the aggregate demand curve
A) shifts right. B) shifts left. C) does not shift. D) stays the same.
Briefly explain the impact of an increase in the price of U.S. oil imports on the country's balance of payments and domestic product and income, assuming floating exchange rates.
What will be an ideal response?
Suppose Darrell has $4,000 in currency which he deposits in his bank. If the reserve ratio is 25 percent, this will lead to a maximum increase of ________ in M1 throughout all banks.
A. $0 B. $4,000 C. $6,000 D. $12,000