The economic model of consumer behavior explains how consumers' tastes and preferences are formed
Indicate whether the statement is true or false
FALSE
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Possible ways for the Fed to increase the money supply include ________ the rediscount rate and ________ reserve requirements
A) lowering, lowering B) lowering, raising C) raising, lowering D) raising, raising
The present value formula makes it apparent that:
A) a decline in the interest rate will cause a decision maker to weigh recent period returns relatively more heavily than before the decline. B) an increase in the interest rate will cause a decision maker to weigh distant (or future) returns relatively more heavily than before the increase. C) the present value of a fixed sum decreases as the time until it is to be paid increases. D) all of the above E) both A and C.
The "no shirking constraint" (NSC) curve never crosses the supply of labor curve, so
A) the market never reaches equilibrium. B) there is always full employment in equilibrium. C) there is always some unemployment in equilibrium. D) the efficiency wage is always lower than the market-clearing wage. E) the gap between the NSC curve and the supply of labor curve equals the difference between the efficiency wage and the market-clearing wage.
Supply Schedule
What will be an ideal response?