According to Classical interest rate theory, which of the following will decrease the equilibrium real interest rate?
A) A decrease in investment
B) A decrease in saving
C) An increase in money demand
D) A decrease in money demand
A
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Suppose the United States eliminates high tariffs on German bicycles. As a result, we would expect
A. the price of German bicycles to increase in the United States. B. employment to decrease in the U.S. bicycle industry. C. employment to decrease in the German bicycle industry. D. profits to rise in the U.S. bicycle industry.
Monetarists argue that an exogenous fall in investment spending leads to
A) declining real output. B) declining money supply. C) declining velocity. D) declining interest rates.
Archer Daniels Midland (ADM) was convicted for this anticompetitive practice in the lysine market.
A. Price fixing B. Predatory pricing C. Bundling D. Exclusive supply contracts
The demand for factors of production is referred to as:
A. production demand. B. derived demand. C. primary demand. D. implied demand.