Michael decides to hire some additional workers for his roofing company. The equilibrium wage is $17 per hour. Efficiency wage theory suggests that it is reasonable for Michael to offer
a. $17 per hour.
b. less than $17 per hour because some people would be willing to work for less.
c. less than $17 an hour to prevent shirking.
d. more than $17 per hour in order to attract a better pool of applicants.
d
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In the above figure, what is the wage rate the monopsonist will pay?
A) W1 B) W2 C) W3 D) W4
The reciprocal of the reserve requirement is called the:
a. spending multiplier. b. tax multiplier. c. lending multiplier. d. deposit expansion multiplier. e. excess reserve multiplier.
Debt held by the public and total debt are two different concepts
a. True b. False
A commercial bank buys a $50,000 government security from a securities dealer. The bank pays the dealer by increasing the dealer's checkable deposit balance by $50,000. The money supply has:
A. Not been affected B. Decreased by $50,000 C. Increased by $50,000 D. Increased by $50,000 multiplied by the reserve ratio