Monopolistic competition is characterized by:
a. a small number of firms selling differentiated products.
b. a large number of firms selling identical products
c. high barriers to entry.
d. a large number of firms selling differentiated products.
d
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If the United States receives $200 billion of foreign investment and at the same time invests a total of $160 billion abroad, then the U.S
A) balance of payments must be negative. B) current account must be in surplus. C) official settlements account balance increases by $40 billion. D) capital and financial account balance decreases by $40 billion. E) capital and financial account balance increases by $40 billion.
During the German hyperinflation of the 1920s, the large increases in the money supply were generated by the German government
A) significantly raising the required reserve ratio to reduce business loans. B) significantly lowering the required reserve ratio to enable German businesses to obtain loans. C) selling large quantities of government bonds to the central bank, the Reichsbank. D) printing large quantities of German marks.
When an investor buys a corporate bond
A) the face value of the bond is equal to what the investor paid for the bond. B) the investor becomes part owner of the corporation. C) the principal of the bond is a loan to the corporation. D) the interest made on the bond represents the bondholder's limited liability in the company.
If two goods are complementary, the cross elasticity will be negative
Indicate whether the statement is true or false