If a firm's minimum efficient scale is relatively small compared to industry output, then only a few firms are needed to satisfy industry demand
Indicate whether the statement is true or false
false
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The balanced budget multiplier is
A) positive because the magnitude of government expenditure multiplier is larger than the magnitude of tax multiplier. B) negative because the magnitude of government expenditure multiplier is larger than the magnitude of the tax multiplier. C) positive because the magnitude of government expenditure multiplier is smaller than the magnitude of tax multiplier. D) equal to zero. E) negative because the magnitude of the tax multiplier is larger than the magnitude of the government expenditure multiplier.
Based on the answer above, the price for iPads _____________ and the quantity demanded for iPads ____________
a. Increase; increase b. Increase; decrease c. Decrease; increase d. Decrease, decrease
Strategic behavior occurs when a firm takes a particular strategy without considering the policies of its rivals
a. True b. False Indicate whether the statement is true or false
To stabilize interest rates, the Federal Reserve will respond to an increase in money demand by
a. buying government bonds, which decreases the supply of money. b. selling government bonds, which increases the supply of money. c. buying government bonds, which increases the supply of money. d. selling government bonds, which decreases the supply of money.