Autonomous expenditure is expenditure that is
A) influenced by the interest rate.
B) not influenced by the interest rate.
C) not influenced by real GDP.
D) not influenced by the price level.
E) influenced by real GDP.
C
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If the central bank of a country increases the interest rate, it will: a. weaken the exchange rate
b. decrease the demand for investment spending. c. increase the price level. d. increase the net exports of that country.
Explain the difference between the short run and the long run in terms of the number of firms in a competitive market
The key question, according to the textbook, for those who want to understand the vast differences in wealth among the nations of the world today is:
What will be an ideal response?
Which of the following is NOT true when there are large economies of scale such that one firm can produce at a lower average cost than can be achieved by multiple firms?
A) This situation produces a natural monopoly. B) Proportional increases in output yield proportionally small increases in total cost. C) The long-run average cost curve of the firm will increase at a low level of output. D) There will only be one firm in this industry.