Which of the following occurs as the economy moves rightward along a given IS curve?
A) A reduction in the interest rate causes investment spending to decrease.
B) A reduction in the interest rate causes money demand to increase.
C) A reduction in the interest rate causes a reduction in the money supply.
D) An increase in government spending causes a reduction in demand for goods.
E) A reduction in taxes causes a reduction in demand for goods.
A
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Which of the following statements is true?
A) Arithmetic or geometric growth rates gives similar answers for long periods. B) Using either arithmetic or geometric average to compute average growth rates gives similar answers for short periods. C) Geometric average of growth rate ignores the exponential nature of growth. D) Arithmetic calculation of growth rate considers the exponential nature of growth.
Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?
Refer to the above table. The table gives the various combinations of Good A and Good B along Jane's indifference curve. The marginal rate of substitution when Jane goes from combination A to combination B is
A. 4:1. B. 3:1. C. 2:1. D. 0.
Globalization leads to a homogenizing of markets
Indicate whether the statement is true or false