In the Keynesian model, everything else equal, a higher level of income
a. increases money demand and reduces the interest rate.
b. increases money demand and increases the interest rate.
c. increases savings and decreases the interest rate.
d. increases investment and has no effect on the interest rate.
e. both b and c.
E
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A country reports exports minus imports of $300 billion, net interest income of $30 billion, net transfers of $50 billion, and no change in official reserves. The country is a
A) net liability. B) net borrower. C) net lender. D) debtor nation. E) net asset.
An increase in the price of a complement shifts the demand curve to the
a. right b. left c. it does not change the demand curve d. none of the above
If a firm hires its fourth worker for $5 and its fifth worker for $8, then
a. the firm is a monopolist. b. the firm must be substituting capital for labor. c. the fifth worker must have been less productive than the fourth. d. the firm is not maximizing its profit. e. the labor market is not perfectly competitive.
In oligopoly, one expects
A. frequent introduction of new or redesigned products. B. aggressive advertising campaigns. C. intense marketing research into the impact of price changes. D. All of the responses are correct.