As the interest rate decreases, the quantity of money people will hold:
a. decreases.
b. increases.
c. stays the same.
d. rises and then falls.
e. falls and then rises.
b
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Which of the following is an example of division of labor?
a. an author writing a book one chapter at a time b. a firm trying to get rid of a labor union c. separating resources into four categories: land, labor, capital, and entrepreneurial ability d. allocating revenue among a firm's resource suppliers e. dividing an assembly process into separate steps
In which of the following ways can a corporation raise new funds for investment? I. Issuing new shares of stock II. Having existing stock resold between two owners
A) I only B) II only C) Both I and II D) Neither I nor II
When considering outsourcing, most laypeople:
A. oppose it because of the visible loss of jobs. B. support it because they enjoy lower consumer prices. C. recognize its benefits to raising foreign wages. D. recognize it frees resources for other jobs for which the U.S. has a comparative advantage.
If the marginal propensity to consume (MPC) is 0.80, the value of the spending multiplier is 2
a. True b. False Indicate whether the statement is true or false