In the classical theory of employment, a rise in the rate of interest will
A. increase saving and decrease investment.
B. decrease saving and increase investment.
C. increase saving and investment.
D. decrease saving and investment.
A. increase saving and decrease investment.
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BAE, a British defense company, has the contract to produce Tornado aircraft for the Royal Air Force. The BBC produces high-quality mystery shows for the British government. Both produce at the lowest possible cost
On a PPF with aircraft and mystery shows on the axes A) BAE and the BBC do not face increasing opportunity costs. B) BAE and the BBC are achieving production efficiency. C) BAE and the BBC are producing at a point outside the PPF. D) the British government is operating outside its PPF.
What is the "medium of exchange" function of money?
A. a common measurement of the relative value of different goods and services B. the ability of money to hold value over time C. the quality of money not to be hoarded because of its commodity value D. the function of money to be widely accepted I exchange for goods and services