Classical economists concluded that
A. Spending leakages exceed spending injections.
B. Investment will decrease in response to increased savings.
C. Interest rates adjust such that business investment and consumer saving may equal.
D. The economy might experience persistent macro instability.
Answer: C
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Which of the following groups has experienced the greatest decrease in poverty rates since 1959?
a. the elderly b. children c. people 18 to 64 years old d. women e. none of the above (i.e., all of these groups have had higher poverty rates)
The idea that individuals can reach an efficient equilibrium through private trades, even in the presence of an externality, is called:
A. market failure. B. trade quotas. C. the Coase theorem. D. the invisible hand.
Consider a course with 40? students, some of whom are confused after the professor explains a concept. The professor? doesn't know whether students are? confused, but will clarify the concept if one student asks a question. A student who asks a questionlong dashand reveals his or her confusionlong dashloses 8 utils. When the professor clarifies the concept in response to a? question, each confused student gets a benefit of 1 util.
Ch 15 Homework. Please Help
You are given the following information: Reserves (R) in the banking system amount to $48 billion, of which $45.8 billion are required. Currency in the hands of the public amounts to $692.5 billion while checkable deposits amount to $650 billion. Calculate the money multiplier.
What will be an ideal response?