Which of the Following Is True

question 61

Multiple Choice

Which of the following is true?

• A)As confidence grows, spending units rely less on borrowed funds and reduce their debt-to-income ratios.
• B)The mixture of hedge, speculative, and Ponzi spending units determines the overall health of the economy.
• C)National wealth includes financial liabilities.
• D)Speculative spending units are more at risk than Ponzi spending units.

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Definitions:

Labor Demand Curve

A graphical representation showing the relationship between the quantity of labor demanded by firms and the wage rate.

Automobile Workers

Individuals employed in the automotive industry involved in the design, development, manufacturing, marketing, and selling of motor vehicles.

Opportunity Cost

The missing out on potential benefits from other options when selecting one path.

Marginal Product

The additional output that is produced by using one more unit of a given input.