Which of the following statements is correct?
a. In the new classical view, the money wage is assumed to adjust quickly to clear the labor market whereas in the Keynesian view, the money wage is sticky in a downward direction.
b. In the new classical view, the money wage is sticky in a downward direction whereas the money wage is assumed to adjust quickly to clear the labor market in the Keynesian view.
c. In both the new classical and the Keynesian views, the money wage is assumed to adjust quickly to clear the labor market.
d. In both the new classical and the Keynesian views, the money wage is sticky in a downward direction.
A
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The situation in which a person places greater value on a good as more and more people possess it is called the
A) Bandwagon Effect. B) Greater Value Effect. C) Snob Effect. D) Behavioral Effect.
Best National Bank operates with a 20 percent required reserve ratio. One day a depositor withdraws $500 from his or her checking account at this bank. As a result, the bank's excess reserves:
a. fall by $500 b. fall by $400. c. rise by $100 d. rise by $500.