For Say's law to hold in a money economy,
A) funds invested must give rise to an equal amount of funds spent.
B) funds saved must give rise to an equal amount of funds invested.
C) funds spent must give rise to an equal amount of output produced.
D) interest rates must fall when saving decreases.
E) b and c
B
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Which of the following will result in a firm increasing its level of production?
a. An increase in its Marginal Costs. b. A decrease in its Marginal Revenue. c. An increase in its Fixed Costs. d. An increase in the price of its product.
How would each of the following affect the firm's marginal, average, and average variable cost curves?
a. An increase in wages b. A decrease in material costs c. The government imposes a fixed amount of tax. d. The rent that the firm pays on the building that it leases decreases.
What will happen when a monopolistic competitive firm increases its price?
a. It will lose all its customers like a perfect competition firm. b. It will lose only a few of its customers like a monopolist. c. It will lose fewer customers than under perfect completion but more than a monopolist. d. It will not lose any customers.
A "bubble" in the housing market can be more easily fueled by
A. cash-only financing requirements. B. exclusive reliance upon banks as a source of credit. C. "exotic" mortgages. D. traditional mortgage loans.