Which of the following statements is correct?
A. Rent performs an incentive function, but not a rationing function
B. Wage rate does not perform an incentive function in the supply of labor
C. Profits are payments to capital resource owners
D. Demand is the "active," and supply the "passive," determinant of land rent
D. Demand is the "active," and supply the "passive," determinant of land rent
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Which of the following statements is true?
a. Private international foreign exchange transactions affect the monetary base. b. Both private foreign exchange transactions and central bank interventions in the foreign exchange market affect the monetary base. c. Neither private foreign exchange transactions nor central bank interventions in the foreign exchange market affect the monetary base. d. Central bank interventions in the foreign exchange market affect the monetary base.
If the Fed wants to reverse the effects of an adverse supply shock on unemployment, it should
a. increase the money supply growth rate which raises the inflation rate. b. increase the money supply growth rate which reduces the inflation rate. c. decrease the money supply growth rate which raises the inflation rate. d. decrease the money supply growth rate which reduces the inflation rate.