If the Fed sells $5 million in government bonds, how much will the money supply change?
A. It will increase by $5 million.
B. It will increase by more than $5 million.
C. It will decrease by $5 million.
D. It will decrease by more than $5 million.
Answer: D
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A) A decrease in investment B) A decrease in saving C) An increase in money demand D) A decrease in money demand
What will happen in an economy if the actual GDP is too high relative to the potential GDP?
What will be an ideal response?
In the short run, marginal cost is positive and increasing at output levels where total variable cost is ________ at a(n) ________ rate.
A. decreasing; increasing B. increasing; increasing C. decreasing; decreasing D. increasing; decreasing
Firms make decisions with the goal of maximizing total revenue.
Answer the following statement true (T) or false (F)