According to the classical economists, which of the following statements is false?
A) There is a direct relationship between the amount individuals save and the interest rate.
B) There is a direct relationship between the amount business firms invest and the interest rate.
C) As the interest rate rises, the quantity supplied of loanable funds rises.
D) Interest rate flexibility will ensure that saving is equal to investment.
B
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Blu-ray disc players, iPhones, and hybrid cars are generally considered to be ________ goods
A) service B) nondurable C) durable D) intermediate
"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of
A) a positive statement. B) the Federal Reserve taking actions that are not at the margin. C) opportunity costs. D) a normative statement.
Refer to the above figure. Which point or points represent(s) a short-run equilibrium?
A) A only B) B only C) C only D) both A and B
Examples of strategic behavior include
A) kinked demand and linear demand. B) prisoner's dilemma and interdependence. C) kinked demand and economic profit D) prisoner's dilemma and kinked demand.