If the central bank has discretion to make policy, it may create economic fluctuations that reflect the electoral calendar. This is called the political business cycle

Some people think it's unfair that celebrities like Kim Kardashian earn a lot more than people who add so much more value to society, like teachers. What do you think explains this wage differential?

What will be an ideal response?

The MPP of capital is defined as the

a. change in total output divided by the change in loanable funds b. change in loanable funds divided by the change in total output c. contribution of loanable funds to the final product d. change in total cost attributed to employing one more unit of loanable funds e. change in output generated by employing one more unit of loanable funds