Economics

Money illusion is A) when people think they are better off when their

Money illusion is A) when people think they are better off when their income increases even though prices have increased by the same amount. B) when people are motivated by self-interest. C) could not exist if the economy did not have competitive markets. D) a basic condition that all classical economists assume people have.   […]

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Date: September 2nd, 2020

Investment includes spending on A) capital goods, buildings, and chan

Investment includes spending on A) capital goods, buildings, and changes in business savings. B) capital goods, buildings, and changes in business inventories. C) capital goods, buildings, and consumer durable goods. D) capital goods, consumer durable goods, and changes in business inventories.   ANSWER B

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Date: September 2nd, 2020

Keynesian theory is based on the hypothesis that A) full employment i

Keynesian theory is based on the hypothesis that A) full employment is automatically attained in any economy. B) saving is influenced primarily by the interest rate. C) saving and consumption are influenced primarily by real current disposable income. D) planned savings equal planned investment only at full employment.   ANSWER C

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Date: September 2nd, 2020