If the money wage rate does not change, a decrease in the price level will ________ the real wage rate and ________ firms' profit
A) raise; increase
B) lower; decrease
C) lower; increase
D) raise; decrease
E) lower; not change
D
Economics
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The upper limit on the value of a share of common stock is
a. nonexistent b. the value of preferred stock plus dividends c. the return rate on corporate bonds d. the dividends accumulated over the life of the business e. the value of stocks of similar firms
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If the marginal propensity to consume in an economy is 0.5, then a $1,000 increase in government spending will increase aggregate demand by $4,000
a. True b. False Indicate whether the statement is true or false
Economics