Saving is disposable personal income spent on investment
a. True
b. False
Indicate whether the statement is true or false
False
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The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. The efficient outcome is raising ________
A) 0 goats B) 40 goats C) 50 goats D) 55 goats
Which of the following is NOT likely to occur when a bank fails?
A) Everyone that deposits money in the bank loses all or a portion of their money, unless the country has a functioning deposit insurance system. B) The loss of savings (or the feared loss of savings) causes households to cut back on consumption, which spreads the recessionary effect wider through the country. C) Unaffected banks may stop making loans as they take a cautious approach, slowing or stopping new investment. D) Layoffs occur and the economy falls deeper into a downward spiraling inflation. E) Other banks make too many loans to make up for the loans not made by the failed bank, kicking off a cycle of stimulation and inflation.
According to Keynes, money wages
a. would adjust in the short run in order to maintain full-employment. b. are inflexible in the short run are cannot guarantee full-employment levels of output. c. are inflexible and fall as the price level rises. d. are more flexible downward than upward direction.
Suppose a monopoly producer is also a monopsonist in the labor market. Demand for the output is p = 100 - Q. The production function is Q = L, and the labor supply curve is w = 10 + L. How much labor does the firm hire? What wage is paid?
What will be an ideal response?