The relationship between the level of saving and the level of consumption is called the savings function
Indicate whether the statement is true or false
FALSE
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In a competitive labor market, if the supply of labor decreases, wages will:
A. increase. B. decrease. C. remain the same. D. drop to zero.
Assume that two firms in an oligopoly market are unable to collude. Once the Nash Equilibrium is reached a. it is always possible for one firm to increase its profits by producing more output. b. the two firms are jointly earning monopoly profit
c. neither firm is able to improve its outcome on its own. d. the outcome is equivalent to a competitive equilibrium.
The fact that expenditures on products and payments to owners of resources used to produce those products flow in opposite directions is known as:
A. the circular flow of income. B. a pure economy. C. a barter economy. D. roundabout production.
The economy enters a period of robust economic growth that is expected to last for several years. How would this be reflected in the risk structure of interest rates?
A. A decrease in the term spread B. An increase in yields on tax-exempt bonds C. A decrease in the interest rate spread D. An inverted yield curve