When the interest rate falls,
a. the opportunity cost of holding money rises.
b. people shift out of holding interest-yielding bonds into holding money.
c. the quantity of money people will hold decreases.
d. investment spending decreases.
e. real GDP will decrease.
b
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What relationship exists between marginal revenue and the elasticity of demand? Use this relationship to explain how a monopoly can increase its profit if demand is inelastic.
What will be an ideal response?
The purchase of a capital asset adds to the demand for loanable funds only if that asset is a domestic one
a. True b. False Indicate whether the statement is true or false
Exhibit 6-10 Short-run cost schedule for book publisher's hourly production TotalOutput TotalVariable Cost TotalCost 0 cases of books $ 0 $200 1 100 300 2 150 350 3 250 450 4 450 650 In Exhibit 6-10, the marginal cost of increasing production from 2 to 3 cases of books is:
A. higher than the marginal cost of increasing production from 1 to 2 cases of books, so the marginal cost curve must be rising in between 2 and 3 cases. B. higher than the marginal cost of increasing production from 1 to 2 cases of books, so the average total cost must be rising in between 2 and 3 cases. C. lower than the marginal cost of increasing production from 1 to 2 cases of books, so the marginal cost must be greater than average total cost between 2 and 3 cases. D. lower than the marginal cost of increasing production from 1 to 2 cases of books, so the average total cost must be rising in between 2 and 3 cases.
Your firm is planning to hold an auction to sell its oil field. What type of auction should you suggest to your boss?
A. English auction B. Dutch auction C. Second-price, sealed-bid auction D. None of the statements is correct.