The LM curve slopes upward because
a. as income rises, savings rise, increasing output.
b. as interest rates rise, the money supply rises, increasing output.
c. as interest rates rise, planned investment must fall, increasing output.
d. as income increases, money demand rises, which increases interest rates.
e. none of the above.
D
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The classical growth theory asserts that
A) population growth leads to more growth in technology. B) population growth will lead to people earning only a subsistence level of income. C) economic growth will continue indefinitely. D) economic growth and population growth complement each other. E) population growth increases a nation's economic growth.
Suppose that apples and bananas both cost the same, but the marginal utility of bananas is twice as high as that for apples. The consumer should purchase more bananas and fewer apples in order to maximize utility
a. True b. False Indicate whether the statement is true or false
A monopolist is a price taker, just like a perfect competitor.
Answer the following statement true (T) or false (F)
Which of the following is most important if a country wants to move from a low-income to a high-income status?
a. high rates of monetary growth. b. sustained economic growth. c. high real interest rates. d. high nominal interest rates.