As the capital-labor ratio increases, real GDP per worker ________, and investment per worker ________
A) increases; decreases
B) decreases; increases
C) increases; increases
D) decreases; decreases
C
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For a monopolistically competitive firm, the demand curve
A) is a horizontal line. B) has a positive slope. C) is vertical. D) has a negative slope. E) is the same as the marginal revenue curve.
Refer to the given information. If nominal GDP is $300 and the supply of money is $230, the equilibrium interest rate will be:
Answer the question on the basis of the following information. For transactions, households
and businesses want to hold an amount of money equal to one-half of nominal GDP. The table
shows the amounts of money they want to hold as an asset at various interest rates.
A. 8 percent.
B. 6 percent.
C. 4 percent.
D. 2 percent.