A policy that induces people to save more shifts
a. the supply of loanable funds rightward and increases investment.
b. the supply of loanable funds leftward and decreases investment.
c. the supply of loanable funds rightward and decreases investment.
d. the supply of loanable funds leftward and increases investment.
a
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If you believe that expectations react quickly, you are likely:
a. a believer in rational expectations b. a Keynesian c. a theoretical economist d. None of these.
Which of the following about inflation is true?
a. Anticipated inflation is an increase in the price level that comes as a surprise, at least to most individuals. b. Unanticipated inflation is a change in the price level that is widely expected. c. Decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy. d. Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.
A demand function is Qd = 55 - 3P, when price is €10, quantity demanded is
(a) 10. (b) 25. (c) Zero. (d) We need more information to answer.
If demand for the product you make were to suddenly decline, you would expect the equilibrium price of the product to fall, which would lead to:
A. no change the VMP of each worker because product prices don't affect worker productivity. B. a decrease in the marginal productivity of each worker. C. an increase in the VMP of each worker. D. a decrease in the VMP of each worker.