When the interest rate falls,
A. the opportunity cost of holding money rises.
B. people shift out of holding interest-yielding bonds into holding money.
C. the quantity of money people will hold decreases.
D. investment spending decreases.
Answer: B
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In a business cycle, the low point of economic activity is called
A. a peak B. a low C. a bottom D. a trough
The table above shows the total product schedule for The X Firm. The average product of labor is maximized at ________ workers because ________
A) 4; productivity is maximized when the 4th worker is employed B) 3; output starts to decrease with the 4th worker C) 5; output is maximized with the 5th worker D) 4; the marginal product of labor is increasing with the 4th worker E) 5; the APL exceeds the MPL for the 5th worker
Which of the following statements is true about public goods?
a. They are always produced by the government. b. The market-determined output is efficient. c. The government can hire a private entity to produce a public good. d. Nonexcludability is sufficient condition for a good to classified as a public good.
An increase in the long-run aggregate supply curve indicates that
a. the natural rate of unemployment has increased. b. unemployment has increased. c. the general level of prices has increased. d. potential real GDP has increased.