Which of the following is TRUE?
A) APC + MPS = 1
B) MPC + MPS = 1
C) 1 + APC = APS
D) APC - APS = 1
B
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When the interest rate is above the equilibrium interest rate there is an
A) excess quantity of money and people will sell bonds. B) excess demand for money and people will sell bonds. C) excess quantity of money and people will buy bonds. D) excess demand for money and people will buy bonds.
The assumption that labor markets clear makes it very easy for the classical model to explain recessions
a. True b. False
Competition reduces some but not all discrimination. Where can one expect competition to reduce discrimination, and where is discrimination likely to go on even if there is competition?
If the marginal utility of the 3rd cup of coffee is 23 and the marginal utility of the 4th cup is 15, then:
A. it is optimal for the consumer to have 4 cups of coffee. B. it is optimal for the consumer to have 3 cups of coffee. C. the price of a cup of coffee must be relatively low. D. there is evidence of diminishing marginal utility.