When the Fed buys $100 worth of bonds from a primary dealer, reserves in the banking system
A) increase by $100.
B) increase by more than $100.
C) decrease by $100.
D) decrease by more than $100.
A
Economics
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If hiring the 6th worker increases total product by 7 units and the price of each unit is $2,
a. the firm should not hire the 6th worker as MB
Economics
Each firm’s capital stock is fixed in the short run. Therefore, if the price of capital increases, then in the short run the market demand curve for labor in a perfectly competitive market will
A. shift inward. B. be unaffected. C. shift outward. D. change slope.
Economics