The demand for labor increases when the:
A. real wage increases.
B. value of the marginal product of labor decreases.
C. real wage decreases.
D. value of the marginal product of labor increases.
Answer: D
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According to the classical model, an increase in the American nominal money supply would cause the nominal exchange rate to ________ and the real exchange rate to ________
A) depreciate; appreciate B) appreciate; depreciate C) depreciate; remain unchanged D) appreciate; remain unchanged
Higher rates of interest increase the opportunity cost of holding money balances
a. True b. False Indicate whether the statement is true or false
To an economist, utility means:
A) additional. B) usefulness. C) satisfaction. D) marginal.
The ______ effect happens when advertising creates urges in people to buy products previously unknown to them.
a. demonstration b. marginal c. allocation d. differentiation