If national saving decreases,
A) the sum of domestic investment and foreign investment must increase.
B) the sum of domestic investment and net exports must increase.
C) the sum of domestic investment and foreign investment must decrease.
D) foreign investment must increase to cover the loss.
C
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New Keynesian theories of efficiency wages imply
a. voluntary unemployment. b. real wage rigidity. c. changes in unemployment represent changes in the natural rate of unemployment. d. market clearing in the labor market in the long-run. e. None of the above
The tendency for people to behave in a riskier way or to renege on contracts when they do not face the full consequences of their actions is called:
A. moral hazard. B. adverse selection. C. counter information. D. collective bargaining.