Keynesian theory is based on the hypothesis that
A) full employment is automatically attained in any economy.
B) saving is influenced primarily by the interest rate.
C) saving and consumption are influenced primarily by real current disposable income.
D) planned savings equal planned investment only at full employment.
C
You might also like to view...
Other things remaining the same, as the real interest rate increases,
A) firms will borrow more funds. B) firms' demand for funds will not change. C) the demand for loanable funds curve shifts leftward. D) firms will purchase new capital with its own funds instead of taking a loan. E) firms will borrow less funds.
Relative to a mobile factor of production, economic theory suggests that the price elasticity of supply for a highly immobile factor of production (for example, land) will be
a. more elastic. b. less elastic. c. of unitary elasticity. d. this is a trick question; the price elasticity of supply for factors of production is not affected by factor mobility.
In terms of economic growth, educated workers are generally:
A. happier. B. less healthy. C. less productive. D. more productive.
Identify the statement that best defines Nash equilibrium.
A. It is a sequence of actions, where the actions are taken at each node of the game. B. It is a set of strategies that gives a player the first-mover advantage. C. It is a sequence of actions that are taken to influence the actions of rivals. D. It is a set of strategies in which a firm does the best it can, given the action of its rival.