An increase in the price level cause aggregate demand to increase.
Answer the following statement true (T) or false (F)
False
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Other things being equal, a price-discriminating firm will charge less to the customers who
A) have the lowest incomes. B) have the least elastic demand for its product. C) have the most elastic demand for the product. D) are the most rational in making their decisions.
Which of the following makes it difficult for markets to produce public goods?
a. Free riders use the goods without paying for them. b. The government intervenes as a free rider. c. Intellectual property is easily stolen by foreign firms. d. Social pressures require firms to lower prices on the goods.
Table 36-1Suppose the economy of Macroland is described by the following:C = 200 + 0.8 DI (DI = disposable income)I = 300 + 0.2Y?50r (Y = GDP)(r, the interest rate, is measured in percentage points. For example, a 9 percent interest rate is r = 9).For this economy, assume that the Federal Reserve uses its monetary policy to peg the interest rate atr = 5G = 750T = 0.25YX = 200M = 150 + 0.2YHint: DI = Y?T From Table 36-1, find the budget deficit or surplus for Macroland.
A. 125.50 B. ?93.75 C. ?126.25 D. ?154.75
Suppose the ABC Corporation had a stock price of $56.80 on December 31, 2006. On December 31, 2007, it has a stock price of $60.15. Over the year, it paid $2.00 in dividends per share. Calculate the total return of a share of ABC Corporation stock in 2007, showing your work.
What will be an ideal response?