As the quantity of labor increases, the marginal product of capital
A) is constant.
B) increases.
C) decreases.
D) may either increase or decrease.
B
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According to the life-cycle hypothesis, as people grow older ________
A) their wealth grows before and after retirement B) their wealth declines before and after retirement C) their wealth grows before retirement, then declines after retirement D) their wealth falls before retirement, then rises after retirement
Which of the following statements is true?
a. The speculative demand for money at possible interest rates gives the demand for money curve its upward slope. b. There is an inverse relationship between the quantity of money demanded and the interest rate. c. According to the quantity theory of money, any change in the money supply will have no effect on the price level. d. All of these are true.