Holding all other things constant, when the price level rises, interest rates:
a. rise and firms want to borrow more for new plants and equipment and households want to borrow less for homebuilding.
b. rise and firms will want to borrow less for new plants and equipment and households will want to borrow less for homebuilding.
c. fall and firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding.
d. all of the above
b
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The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $6 per hour, how many hours of students' labor are unemployed?
A) 12,000 hours B) 9,000 hours C) 6,000 hours D) 0 hours
Medicaid is an example of a cash assistance poverty program
Indicate whether the statement is true or false
When we assume that the supply of money is a variable that the central bank controls, we
a. must then assume as well that the demand for money is not influenced by the value of money. b. must then assume as well that the price level is unrelated to the value of money. c. are ignoring the fact that, in the real world, households are also suppliers of money. d. are ignoring the complications introduced by the role of the banking system.
If ________, net exports are negative
A) imports exceed transfer payments B) imports exceed exports C) exports exceed transfer payments D) exports exceed imports