In the simple Keynesian model of the determination of income, planned investment is
A) an endogenous parameter.
B) autonomous and thus an exogenous parameter.
C) explained by the model of income determination.
D) None of the above.
B
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The stock market crashed in the year __________.
Fill in the blank(s) with the appropriate word(s).
Using the scenario above what might the instructor do to avoid this same result?
What will be an ideal response?
If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no transaction costs, and the exchange rate is 10 rand/US$, then
A) there is an arbitrage opportunity by buying the wine in the U.S., and selling it in South Africa and the price in South Africa will drop. B) there is an arbitrage opportunity by buying the wine in the U.S., and selling it in South Africa and the price in the U.S. will drop. C) there is no arbitrage opportunity. D) Unable to determine, since France is in the eurozone and we would need exchange rates in euro terms.
Which of the following statements about a monopolistically competitive firm is FALSE?
A) It tries to differentiate its product from that of competitors. B) It may earn short-run economic profits. C) It produces the quantity at which MC=MR. D) It sets price like a perfectly competitive firm.