A positive spending shock ________ real interest rates and ________ output in the short run, thereby its effect on stock prices is ________
A) raises; lowers; positive
B) raises; raises; ambiguous
C) lowers; raises; negative
D) lowers; raises; positive
B
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Supply curves applicable to shorter periods of time tend to:
a. be represented by horizontal lines parallel to the quantity axis. b. be perfectly elastic. c. be more inelastic than supply curves that apply to longer periods of time. d. be more elastic than supply curves that apply to longer periods of time. e. have a price elasticity of supply that is approximately equal to 1.
A decrease in the price of a currency in terms of another under a flexible exchange rate regime is called:
a. capital flight. b. depreciation. c. revaluation. d. devaluation. e. currency adjustment.
A major advantage of the corporate form of business organization is the concept of limited liability.
Answer the following statement true (T) or false (F)
You have an hour between your economics and math classes. What is the opportunity cost of that time if you use it to complete your math homework instead of your economics homework?
A. the economics homework you could have completed B. the math homework you chose to complete C. the cost of your calculator and math textbook D. zero, because it doesn't cost any money to do your math homework