The impact of monetary policy on investment spending may be weakened:
A. because of the Treasury's desire for high interest rates.
B. if the rate at which dollars are spent changes in the same direction as the money supply.
C. if the investment-demand curve shifts to the right during inflation and to the left during
recession.
D. if the investment-demand curve is very flat.
C. if the investment-demand curve shifts to the right during inflation and to the left during
recession.
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Given that the market wage rate is $50 and both the labor and the goods market are perfectly competitive, a profit-maximizing firm should hire an additional worker if:
A) the marginal product of the worker is 50 units. B) the value of marginal product of the worker is at least $50. C) the marginal product of the worker is less than 50 units. D) the value of marginal product of the worker is less than $50.
When economists refer to the "brain drain" in developing countries what do they mean?
What will be an ideal response?
A lack of understanding regarding the current state of the economy creates:
A. an information lag. B. a direction lag. C. a formulation lag. D. an implementation lag.
In 2004, China had a substantial trade surplus with
A. Japan. B. Russia. C. the United States. D. Brazil.