When an individual's wage rises, the income effect tends to:
a. increase hours worked.
b. decrease hours worked.
c. leave hours worked unchanged.
d. an impossible prediction about what will happen to hours worked.
b
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Which of the following is true?
a. Items that supply the nation's currency to the foreign exchange market are recorded as credits in the nation's balance of payments accounts. b. Items that create a demand for the nation's currency in the foreign exchange market are recorded as debits in the nation's balance of payments accounts. c. The purchase of a BMW from a German automaker by a U.S. college professor would be recorded as a debit in the U.S. balance of payments accounts. d. Both a. and b. are correct.
In 1980, the U.S. economy had an inflation rate of
a. about 1 percent and an unemployment rate of about 7 percent. b. less than 4 percent and an unemployment rate of less than 6 percent. c. less than 7 percent and an unemployment rate of about 9 percent. d. more than 9 percent and an unemployment rate of about 7 percent.