When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand
B. increase; raise; decline
C. decline; lower; decline
D. decline; raise; decline
Answer: B
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An implication of the efficient markets hypothesis is that
A) only sophisticated investors will be able to earn above-normal profits from financial investments. B) above-normal profits are available only to major traders. C) above-normal profits will be eliminated in the trading process. D) unless he or she acts recklessly, the average investor should be able to make above-normal profits.
Once a firm has selected a price for its product, quantity is decided by consumers and their demand curves
a. True b. False Indicate whether the statement is true or false
Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.
Answer the following statement true (T) or false (F)
Refer to the above table. Dave's utility schedule is characterized by
A. constant total utility. B. diminishing marginal utility. C. increasing marginal utility. D. constant marginal utility.