Schumpeter’s theory that business cycles are caused by breakthroughs in the form of new products, new machines, or new production techniques is known as the
a. real business cycle theory.
b. innovation theory.
c. over investment theory.
d. technology theory.
b. innovation theory.
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A worker who has invested in ________ skills will be ________ mobile than would otherwise be the case
A) occupation-specific; less B) occupation-specific; more C) ethical; less D) ethical; more E) occupation-nominal; less
Those who view education as a sorting mechanism emphasize that employers value
a. the skills that people who attend college have already acquired before they enter college. b. the docility and deference to authority learned in the classroom. c. the analytic ability of the highly educated worker. d. the work habits picked up in the home and school.
Why is the international financial system today often called a “nonsystem”?
What will be an ideal response?
If the reserve requirement is 12 percent and banks desire to hold no excess reserves, when a bank receives a new deposit of $1,000,
a. it must increase its required reserves by more than $150. b. its total reserves initially increase by $120. c. it will be able to make new loans up to a maximum of $880. d. None of the above is correct.