Classical economists perceive that
A. investors' expectations about returns on investment are unstable.
B. large investment swings are responses to small changes in interest rates.
C. the best way to cure unemployment is to start a war.
D. the proper cure for unemployment is active fiscal policy.
B. large investment swings are responses to small changes in interest rates.
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Under which exchange rate system was a dollar redeemable for gold only if the dollar was presented by a foreign central bank?
A) a fiat system B) the gold standard C) a managed float exchange rate system D) the Bretton Woods System
In the circular flow model, producers
A) and households spend earnings from resource sales on goods and services in the factor market. B) spend earnings from resource sales on goods and services in the product market. C) sell goods and services in the input market. D) hire resources sold by households in the factor market.