Keynes thought that the key to determining the broader economic effects of investment fluctuations
A. was to closely regulate the real interest rate.
B. was to understand how changes in the money supply influences consumption decisions.
C. was to understand the relationship between how much people earn and their willingness to engage in personal consumption spending.
D. was to examine how businesses react to flexible prices and wages.
Answer: C
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Diminishing marginal returns refers to the fact that
a. holding other inputs constant, additional increases in labor lead to smaller changes in output. b. holding other inputs constant, additional increases in labor lead to lower output. c. additional increases in labor always lead to smaller changes in output d. the returns to labor fall as real wages rise.
What is owner's equity?
a. What a company owes b. What is left after the liabilities are satisfied c. What a company owns d. None of these
The factors of production are the:
A. list of inputs required for a given durable good. B. ingredients that go into making any good or service. C. costs and benefits of a given production process. D. outputs that society as a whole have chosen to produce.
Which of the following is an accurate rough translation of ceteris paribus?
a. “supporting the same idea” b. “making everything else different” c. “holding everything else constant” d. “challenging the same idea”