When firms hold excess capital, the value of the multiplier decreases.
Answer the following statement true (T) or false (F)
True
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Suppose that a firm can produce its output at either of two plants. If profits are maximized, which of the following statements is true?
A) The marginal cost at the first plant must equal marginal revenue. B) The marginal cost at the second plant must equal marginal revenue. C) The marginal cost at the two plants must be equal. D) all of the above E) none of the above
Price elasticity of demand is calculated as
a. the percentage change in quantity demanded divided by the percentage change in price b. the percentage change in price divided by the percentage change in quantity demanded c. the absolute change in quantity demanded divided by the absolute change in price d. the absolute change in price divided by the absolute change in quantity demanded e. none of the above
A monopolist has complete control over both price and quantity of output
a. True b. False
Unemployment caused by a recession, assuming the time it takes to find a job constant, is called:
A. natural unemployment. B. frictional unemployment. C. cyclical unemployment. D. structural unemployment.