In the classical model the interest rate is determined in the money market; in the short-run macro model the interest rate is determined in the market for loanable funds
a. True
b. False
B
You might also like to view...
Which of the following is true concerning the income effect of a decrease in price?
A) It will lead to an increase in consumption only for a normal good. B) It always will lead to an increase in consumption. C) It will lead to an increase in consumption only for an inferior good. D) It will lead to an increase in consumption only for a Giffen good.
What is a downside of trade protection?
a. Instead of protecting U.S. interests and giving domestic manufacturing an advantage over items manufactured elsewhere, it can have the unintended effect of driving the manufacturing completely out of the country. b. It can give U.S. interests and domestic manufacturing too much of an advantage over items manufactured elsewhere, having the unintended effect of driving the manufacturing completely out of the country. c. It can give U.S. interests and domestic manufacturing too much of an advantage over items manufactured elsewhere, having the unintended effect of bringing more manufacturing into the country than can be handled. d. Instead of protecting U.S. interests and giving domestic manufacturing an advantage over items manufactured elsewhere, it can have the unintended effect of bringing more manufacturing into the country than can be handled.
The breakeven level of income is the
A. Amount of income a person must have to reach the poverty line. B. Level of income at which an individual household begins to have some discretionary income. C. Lowest level of income at which in-kind benefits are no longer necessary. D. Level of income at which welfare eligibility ceases.
Refer to Figure 3.4. A Nash equilibrium is achieved at which cell(s) in the payoff matrix?
A) only at (North, North) B) only at (South, South) C) at both (North, North) and at (South, South) D) There is no Nash equilibrium.