If a firm adopts a labor-augmenting piece of technology, it will:
A. increase the marginal product of labor.
B. decrease the marginal product of labor.
C. increase the marginal supply of labor.
D. decrease the marginal supply of labor.
A. increase the marginal product of labor.
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Write an essay on the Leontief Paradox. Include in your discussion what Leontief found that was so paradoxical as well as a brief description of several of the various reconciliations that have been offered to explain the Paradox
What will be an ideal response?
If a bank has $50,000 in excess reserves at the end of a business day and the required reserve ratio is 20 percent, the bank can increase its profits by: a. keeping the excess reserves
b. loaning out $40,000. c. loaning out $50,000 to another bank. d. borrowing $50,000 to remove the excess reserves. e. keeping $10,000 and depositing $40,000 with the Fed.