Which of the following statements about the classical model of the economy is FALSE?
A) Individuals pursue the public interest, not their own self-interest.
B) The economy will always move toward, or be at, full employment.
C) Savings and investment will always be equal.
D) Wages and prices are flexible.
A
Economics
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Which monetary policy tool is considered an expansionary tool?
(A) Decreasing the discount rate. (B) Cutting taxes. (C) Increasing the reserve requirements. (D) Increasing government spending.
Economics
When a firm's long-run average cost curve is horizontal for a range of output, then that range of production displays
A) constant average fixed costs. B) decreasing returns to scale. C) increasing returns to scale. D) constant returns to scale.
Economics