Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show your answer clearly, thanks. If investment spending is very sensitive to the interest rate, then: 0 the LM curve should be relatively flat.

image text in transcribedimage text in transcribed

Please show your answer clearly, thanks.

image text in transcribedimage text in transcribedimage text in transcribed
If investment spending is very sensitive to the interest rate, then: 0 the LM curve should be relatively flat. 0 the LM curve should be relatively steep. O neither the IS nor the LM curve will be affected. 0 the IS curve should be relatively steep. O the IS curve should be relatively flat. When the Canadian dollar appreciates, we know that: O the dollar is less expensive to foreigners. 0 Canadian goods are less expensive to foreigners. 0 foreign currency is less expensive to Canadians. 0 foreign goods are less expensive to Canadians. 0 Canadian goods are as expensive as foreign goods. Efficiency wage theory suggests that: 0 firms will be more resistant to wage increases as the labour market tightens. 0 workers will be paid more than their reservation wage. O productivity might drop if the wage rate is too high. Q unskilled workers will have a lower turnover rate than skilled workers. 0 the government can only set tax rates so high before people will prefer not to work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jan Williams, Mark Bettner, Joseph Carcello

18th Edition

1260247945, 9781260247947

More Books

Students also viewed these Economics questions

Question

Define Decision making

Answered: 1 week ago

Question

What are the major social responsibilities of business managers ?

Answered: 1 week ago

Question

What are the skills of management ?

Answered: 1 week ago

Question

How easy the information is to remember

Answered: 1 week ago

Question

The personal characteristics of the sender

Answered: 1 week ago

Question

The quality of the argumentation

Answered: 1 week ago