Since people respond to incentives, we would expect that, if the average salary of accountants increases by 50% while the average salary of teachers increases by 20%, then
a.fewer students will take degree courses in accounting and more will take education courses.
b.fewer students will take degree courses in education and more will take accounting courses.
c.fewer students will attend university.
d.none of these answers.
Answer is b.fewer students will take degree courses in education and more will take accounting courses.
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Sweden's currency would tend to depreciate if:
a. Sweden's inflation rate rises relative to inflation in the rest of the world. b. the demand for imports by Swedes increases c. real interest rates in Sweden decrease relative to the rest of the world. d. all of the above
Market prices
What will be an ideal response?
In developing countries, it can be expensive and time-consuming for the poor to legalize their property ownership. Without legal title, the property cannot be used as ________ to borrow funds
A) collateral B) points C) interest D) restrictive covenants
The long-run neutrality of money refers to the fact that in the long run, monetary policy
A) changes only real output. B) changes only the real interest rate. C) changes both real output and the real interest rate. D) has no effect on either real output or the real interest rate.