According to Keynes
A. nominal wages are sticky.
B. markets are perfectly competitive.
C. money illusion does not exist.
D. the short-run aggregate supply curve is vertical.
Answer: A
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The above figure shows the demand curve for dollars in the yen/dollar exchange market. A movement from point A to point B means that the
A) quantity supplied of dollars has increased. B) quantity demanded of dollars has increased. C) quantity demanded of dollars has decreased. D) quantity demanded of yen has decreased.
Project C has an expected value of $500 and a standard deviation of 50. Project D has an expected value of $300 and a standard deviation of 10. Comment on the desirability of these projects
What will be an ideal response?
Taxes are injections into the circular flow of income and expenditure model
a. True b. False Indicate whether the statement is true or false
Most statistical studies on the relationship between real interest rates and saving conclude that higher real interest rates
a. increase saving. b. tend to decrease saving. c. tend to decrease both consumption and saving. d. have no effect on saving.