How does the classical position on saving differ from Keynes's position?
A) Classical position: people save more at lower interest rates. Keynes's position: people save less at lower interest rates.
B) Classical position: changes in the interest rate are irrelevant to saving decisions. Keynes's position: saving is directly related to the interest rate.
C) Classical position: saving is directly related to the interest rate. Keynes's position: at times, saving may be inversely related to the interest rate.
D) Classical position: saving can be inversely related to the interest rate. Keynes's position: consumption rises as saving rises.
E) none of the above
C
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If you wanted to measure changes in fiscal policy intentions, you should use the
a. capital budget. b. actual deficit. c. inflation-accounted deficit. d. structural deficit.
The labor demand curve of a firm
A. will shift to the left if the price of the product the labor is producing falls. B. is perfectly elastic if the firm is selling its product in a purely competitive market. C. reflects a direct relationship between the number of workers hired and the money wage rate. D. is the same as its marginal product curve.
Governments run a balanced budget when
A) their debt is interest-free. B) transfer payments equal zero. C) revenues equal spending. D) revenues exceed spending.
An editorial in a newspaper calling for the government to abolish the minimum wage because it takes advantage of consumers is an example of a(n)
a. positive economic statement. b. pure economic statement. c. normative economic statement. d. abstract economic statement.