The numerical value of the MPC is typically
a. less than 1.
b. equal to 1.
c. greater than 1.
d. unpredictable.
a
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What is the relationship between interest rates and demand for money?
(A) As interest rates decrease, demand for money increases. (B) Interest rates and demand for money are unrelated. (C) As interest rates increase, demand for money increases. (D) Interest rates are determined by demand for money.
Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit. Assume that labor is the only input. If hiring another worker would increase output by three units per hour, then to maximize profits the firm should
A) not hire an additional worker. B) not change the number of workers it currently hires. C) hire another worker. D) There is not enough information to answer the question.