During a recession, firms' expected profit from investment ________ so the demand for loanable funds curve ________
A) rises; shifts rightward
B) falls; shifts leftward
C) rises; shifts leftward
D) falls; does not shift
E) falls; shifts rightward
B
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What is the "midpoint formula" and why is it used?
What will be an ideal response?
The above figure shows the demand and cost curves facing a monopoly. At the profit-maximizing price, the elasticity of demand equals
A) -1. B) zero. C) infinity. D) -3.
In the market for euros, if the current exchange rate is below the equilibrium rate,
a. the quantity supplied and the quantity demanded for euros are equal. b. there is an excess supply of euros and the exchange rate will fall. c. there is an excess demand for euros and the exchange rate will rise. d. the exchange rate will neither rise nor fall. e. there is an excess demand for euros and the exchange rate will fall.
If a price ceiling is imposed,
a. the market supply curve shifts to the right b. the market demand curve shifts to the left c. an excess demand for the good results d. the government would be required to buy the excess supply of the good e. the equilibrium price falls below the price level the government wishes to achieve