A monopsonist wants to purchase more labor. Which of the following statements is TRUE?
A) The wage rate that the monopsonist has to pay future workers is lower than it pays current workers since there is no other place to work.
B) The wage rate that the monopsonist has to pay future workers will be the same rate it pays current workers.
C) The wage rate that the monopsonist has to pay future workers is higher than what it will continue to pay current workers.
D) The monopsonist will have to raise the wage rate for current and additional employees.
Answer: D
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One type of demander in the loanable funds market
A) lends funds to purchase financial capital. B) lends funds to purchase physical capital. C) wants physical capital in order to purchase financial capital. D) wants funds to purchase financial capital. E) wants funds to purchase physical capital.
Most of the pressure for a monetary growth rule has disappeared because since 1980
A) the relationship between movements in interest rates and movements in real GDP and the price level have become much weaker. B) the relationship between movements in the money supply and movements in real GDP and the price level have become much stronger. C) the relationship between movements in the money supply and movements in real GDP and the price level have become much weaker. D) the relationship between movements in interest rates and movements in real GDP and the price level have become much stronger.