The less interest-sensitive is money demand, the
A) more effective is fiscal policy relative to monetary policy.
B) more effective is monetary policy relative to fiscal policy.
C) steeper is the IS curve.
D) flatter is the LM curve.
B
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A firm's demand for labor increases and its demand curve for labor shifts rightward if
A) the wage rate falls. B) the price of its product falls. C) its value of marginal product decreases. D) an advance in technology increases the marginal product of labor.
The most common form of business organization, as far as the number of such firms in business, is the
A) proprietorship. B) partnership. C) corporation. D) S corporation.
Which of the following is a feature of an M-Form organization?
a. divisions have difficulty responding to changes in customer demand b. it is easier to maintain customer relationships c. coordination across divisions is simple and does not take much management time d. evaluating employees is easier because managers typically are similarly trained
As the marginal propensity to consume (MPC) decreases, the spending multiplier:
a. increases. b. decreases. c. remains constant. d. becomes indefinable.