Spending VCU4 on real-world goods and services causes the nation's:
a. M2 money supply to remain the same.
b. M2 money supply to rise.
c. M2 money multiplier to rise.
d. M2 money supply to fall.
.A
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Assume that an increase in Costa Rica's government budget deficit reduced desired national saving by 10 million colon. Assuming Costa rice is a small open economy, you would expect the government's action to
A) increase the current account balance by exactly 10 million colon. B) increase the current account balance by less than 10 million colon. C) reduce the current account balance by exactly 10 million colon. D) reduce the current account balance by more than 10 million colon.
The quantity theory assumes that
a. velocity is constant. b. income is constant. c. prices are constant. d. transactions are constant.
Consider two situations: In situation A the production of widgets is monopolized by a single firm. In situation B the production of widgets is perfectly competitive. In both situations the supply of labor to widget makers is infinitely elastic at a wage of w. Which of the following statements is true?
a. The marginal value product of labor will be the same in the two cases. b. The marginal value product of labor is higher in case B than in case A. c. The marginal value product of labor is higher in case A than in case B. d. From the information given it is not possible to make a definite statement about the marginal value product of labor.
Which of the following is NOT a common characteristic of oligopoly?
A. marginal cost pricing. B. barriers to entry C. strategic dependence among firms in the industry D. product differentiation