According to the classical economists,
A. the interest rate will ensure that the amount households plan to save will equal the amount businesses desire to invest.
B. the amount households plan to save is determined primarily by their wage.
C. increasing government spending is the most reliable method of restoring full employment.
D. unemployment is caused by too little spending.
Ans: A. the interest rate will ensure that the amount households plan to save will equal the amount businesses desire to invest.
You might also like to view...
For a normal good, such as steak,
a. quantity demanded increases as its price falls. b. the income and substitution effects work in opposite directions c. the income effect is negative d. the income effect reinforces the substitution effect e. the supply curve is vertical
Some individuals or families can become completely saturated with a service such as television. This suggests that
a. wants are limited b. desires for a single commodity can be satisfied but then the focus will switch to other goods and services c. a highly productive economy may someday be able to satisfy all human desires d. resources are not truly fixed in supply as we generally assume e. scarcity does not exist
Which of the following policies would be most likely to reduce the efficiency of a country's economic organization
What will be an ideal response?
Which of the following is not a common characteristic of IACs?
A. market-based economies B. large stocks of technologically advanced capital C. well-educated labor D. low per capita energy consumption