In the Classical interest theory, saving and investment determine
A) the price level.
B) unemployment.
C) the money supply.
D) interest rates.
D
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In the above figure, in order for this country to move from production possibilities frontier PPF1 to PPF2, it might
A) increase the skills and productivity of its work force. B) put all unemployed resources to work producing desired output. C) engage in exchange with other nations. D) increase the average level of prices for all goods produced and consumed.
When some forms of money start to pay interest, then along with a rise in real output it takes a ________ rise in the market interest rate than before to hold the demand for money equal to its supply, which is to say that the LM curve has become
________. A) larger, steeper B) larger, flatter C) smaller, steeper D) smaller, flatter
In order to improve living standards for future generations, the economy must
a. sacrifice consumer goods today. b. reduce its investment goods. c. increase government spending. d. reduce growth in the population.
Eating a bag of sweets gives Rory 25 utils of satisfaction. How many additional utils would you expect Rory would get from eating a second bag of sweets?
(a) 25 utils. (b) Less than 25 utils. (c) More than 25 utils. (d) 50 utils.