An individual's labor supply curve will have a
A) positive slope if the income effect exceeds the substitution effect.
B) negative slope if the substitution effect exceeds the income effect.
C) positive slope if the substitution effect exceeds the income effect.
D) negative slope regardless of whether the substitution effect or income effect is larger.
C
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Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve reduces the required reserve ratio to 4 percent, then the bank can make a maximum loan of
A) $0. B) $4 million. C) $6 million. D) $10 million.
The new Keynesian economists believed that:
a. wages and prices are flexible in the short run. b. wages are flexible but prices are not flexible in the long run. c. wages are not flexible but prices are flexible in the short run. d. wages and prices are not flexible in the short run. e. wages and prices are not flexible in the long run.