The intuition behind the slope of the LM curve is that
a. as the interest rate increases, the money supply increases and income increases.
b. as the interest rate increases, investment and income decreases.
c. as income increases, money demand increases which increases interest rates.
d. as income increases, money demand decreases which decreases interest rates.
e. none of the above.
C
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Over the last 50 years, U.S. labor productivity grew the fastest during the ________ because of ________
A) 1990s; advancements in healthcare due to the unlocking of the human genome B) 1980s; the invention of the computer and the oil embargo C) 1970s; an increase in government taxes and expanded regulations D) 1900s; the war on terror and return to the basics of education E) 1960s; fast paced technological change and large increases in human capital accumulation
The cost of an action is
A) indeterminate from a strictly economic point of view. B) the value of the next-best alternative opportunity sacrificed C) the cost to the consumer plus the cost to the producer. D) the number of consumers needed to set the price. E) measured only in money.
Financial markets and financial intermediaries comprise the financial system
Indicate whether the statement is true or false
Inflation was a problem during the Great Depression
Indicate whether the statement is true or false