Why are firms usually unwilling to lower nominal wages?
What will be an ideal response?
Firms are usually unable or unwilling to cut nominal wages because of contractual restrictions or because of morale problems that would result from falling wages.
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If the money multiplier is 2.4 and the Fed buys $8 million in securities on the open market, transaction deposits could potentially
A) decrease by $16.5 million. B) increase by $8 million. C) decrease by $19.2 million. D) increase by $19.2 million.
In the textbook model of endogenous growth, long-run output growth would decline if there were either a ________ in the saving rate or a ________ in the depreciation rate
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Only corporations benefit from limited liability
Indicate whether the statement is true or false
Refer to the above figures. Julie's total utility for consuming donuts reaches a maximum at 4 cookies. Which panel best represents marginal utility?
A. Panel A B. Panel B C. Panel C D. Panel D