Which of the following statements is true?
A) An increase in the nominal wage rate leads to a decrease in the real wage rate if the price level is stable.
B) In an economy which has a positive inflation rate, the real wage rate is always greater than the nominal wage rate.
C) An increase in the real interest rate always encourages higher savings.
D) An increase in the real interest rate might discourage savings.
D
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Neoclassical growth theory predicts that China's economic growth rate will ________
A) decrease when the interest rate increases B) continue at around 10 percent a year C) always remain above the U.S. economic growth rate D) eventually converge to the U.S. economic growth rate
The aggregate demand curve slopes downward in part due to the:
A. negative relationship between the price level and net exports. B. positive relationship between the price level and exports. C. negative relationship between the price level and imports. D. All of these are true.
Why would lack of cooperation between criminal suspects be desirable for society as a whole?
a. The suspects are able to choose optimal outcomes for themselves by acting in their own self interest. b. The prisoners' dilemma safeguards the criminals' constitutional rights. c. More criminals will be convicted. d. None of the above is correct.
Which of the following would increase the investment component of U.S. GDP?
A. A French man purchases a vacation at a Disney theme park in France. B. Disney World purchases tires for the monorail from a firm in Ohio. C. You purchase shares of Disney stock. D. You purchase a vacation at Disney World in Florida.