The effect of quantitative easing is to:
What will be an ideal response?
raising bond prices and thus reduce interest rates.
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In maximizing economic profit, the monopolist will
A) choose the highest price that still permits some output sales. B) equate marginal cost to minimum average total cost. C) equate price to marginal cost. D) equate marginal revenue to marginal cost.
A chain saw is an example of which of the following factors of production?
a. Land. b. Labor. c. Capital. d. None of these.
The Ii = S equation describes
a. an economy in macroequilibrium b. what producers do; they invest their savings c. an economy that isn't in equilibrium because the critical equation expressing equilibrium—Ii = Ia—is missing d. the coincidence between aggregate investment and aggregate saving e. the surplus associated with intended investment
According to this model, if the government uses a uniform standard
Suppose that two firms, X and Y, face the following abatement costs: MACX = 1.2AX, MACY = 0.3AY TACX = 0.6AX2 TACY = 0.15AY2 Further assume that the combined abatement standard is 40 units for both firms. a. firm Y would face a marginal abatement cost that is higher than that for firm Y b. that standard would achieve a cost-effective solution c. firm Y should do more of the abating and firm X should do less to move closer to a cost-effective solution d. firm X’s marginal abatement cost would be $48, and firm Y’s marginal abatement cost would be $12