A productivity improvement will cause
A. a downward shift in the saving-per-worker curve and a decrease in the capital-labor ratio.
B. a leftward movement along the saving-per-worker curve and a decrease in the capital-labor ratio.
C. a rightward movement along the saving-per-worker curve and an increase in the capital-labor ratio.
D. an upward shift in the saving-per-worker curve and an increase in the capital-labor ratio.
Answer: D
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For any given level of output:
A) marginal cost must be greater than average cost. B) average variable cost must be greater than average fixed cost. C) average fixed cost must be greater than average variable cost. D) fixed cost must be greater than variable cost. E) None of the above is necessarily correct.
When the Fed eases U.S. monetary policy, domestic interest rates ________, making U.S. assets relatively less attractive to foreign investors, and ________ the equilibrium exchange rate.
A. rise; increasing B. fall; decreasing C. fall; increasing D. rise; decreasing