The real-balance effect indicates that at higher price levels
A) the real value of money holdings increase, resulting in increased saving.
B) the purchasing power of money will increase.
C) the real value of money holdings fall, resulting in decreased spending.
D) the value of the dollar will increase.
C
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A. Everything else remaining unchanged, what is likely to happen to the demand curve for coffee workers if:
i. there is a fall in the price of coffee. ii. there is an increase in the wage rate. iii. there is a rise in the price of coffee seeds. iv. a new fertilizer that increases the productivity of coffee farmers is invented. b. Everything else remaining unchanged, what is likely to happen to the supply curve of female workers if: i. the opportunity cost of working outside home decreases. ii. there is an increase in the wage rates.
Assume two people live in the same neighborhood, the same size house and earn identical incomes. Both are unmarried without children. How might one of them actually be poorer than the other?
What will be an ideal response?
If a country is producing efficiently and is on the production possibilities frontier, producing more of one good would result in a movement along the frontier
Indicate whether the statement is true or false
Which of the following is not an advantage of the corporate structure over proprietorship and partnership forms of business organization?
a. Stockholders in the corporation have limited liability, whereas proprietors or partners have unlimited liability. b. Ownership rights of a corporation may be transferred more easily. c. Large investment funds are more easily attracted by the corporation. d. Corporations are less likely to suffer from the principal-agent problem.