Assume that there is an increase in perceived bankruptcy risk. As a result of this we would expect to see
a. income and interest rates to rise.
b. money demand and interest rates to fall.
c. money demand and interest rates to rise.
d. money supply to rise and interest rates to fall.Figure 7-1
C
Economics
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Which of the following is likely to happen if the government of a country introduces a subsidy on job creation?
A) The labor demand curve shifts to the right. B) The labor supply curve shifts to the right. C) The labor supply curve shifts to the left. D) The labor demand curve shifts to the left.
Economics
The law of diminishing returns assumes that
A) there is at least one fixed input. B) all inputs are changed by the same percentage. C) additional inputs are added in smaller and smaller increments. D) all inputs are held constant.
Economics