In the short run, when the Fed increases the federal funds rate,
A) the real interest rate rises and investment does not change.
B) the real interest rate is unaffected but investment still decreases.
C) the real interest rate rises and investment decreases.
D) there is no effect on investment because investment depends on the real interest rate.
E) the real interest rate falls and investment increases.
C
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If a firm in a monopolistically competitive market has a demand curve shifting to the right, it is likely that:
A. positive economic profits are being earned. B. firms are entering the market. C. the selling price is less than the average total cost of the firm. D. All of these statements are true.
Increasing U.S. trade deficits result in: a. federal budget surpluses
b. increased U.S. savings. c. reduced purchases of U.S. government bonds by people in other countries. d. accumulation of dollars overseas. e. increased U.S. investment abroad.
In the long run, a monopolistically competitive firm acting according to the Chamberlin model
A. will operate at the minimum point of the marginal cost curve. B. will earn positive economic profits. C. will operate at the minimum point of the average cost curve. D. will not operate at the minimum point of the average cost curve.
If velocity is 6 and the quantity of money is $2 trillion, what is nominal GDP?
What will be an ideal response?