The quantity of money demanded increases at every combination of GDP and interest rate. If the Fed holds to an unchanged interest rate target, the interest rate __________ and GDP __________
A) rises; falls
B) rises; remains unchanged
C) remains unchanged; remains unchanged
D) remains unchanged; falls
C
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Which of the following is(are) the main factor(s) spurring economic growth?
A. Improving technology. B. More and better capital. C. More and better labor. D. All of these cause economic growth.
A perfectly competitive firm maximizes profits or minimizes losses in the short-run by producing at the output level at which:
a. marginal revenue equals marginal cost. b. total revenue equals total cost. c. total revenue is at a maximum. d. none of these.
Two goods are substitutes if a decrease in the price of one raises the quantity demanded of the other
a. True b. False Indicate whether the statement is true or false
Refer to Figure 21.3. The vertical difference between the total cost curve and the total fixed cost curve represents
A. Total marginal costs. B. Average fixed costs. C. Total variable costs. D. Average variable costs.