In the model of monopolistic competition, if firms have ________ average cost curves, then opening trade will ________ the total number of firms and ________ the average price
A) downward sloping; decrease; decrease
B) downward sloping; decrease; increase
C) downward sloping; increase; decrease
D) upward sloping; decrease; increase
E) upward sloping; increase; decrease
A
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High levels of sales that spur high levels of investment spending is an example of a
a. vicious circle. b. virtuous circle. c. convergence circle. d. divergence circle.
Money is the only asset that functions as a store of value
a. True b. False Indicate whether the statement is true or false
Natural monopolies include
A. cell phone companies. B. colleges and universities. C. fast-food outlets. D. the local water company.
If there is capital flight from the United States, then the demand for loanable funds
a. and the supply of dollars in the foreign-exchange market shift right. b. and the supply of dollars in the foreign-exchange market shift left. c. shifts left while the supply of dollars in the foreign-exchange market shifts right. d. shifts right while the supply of dollars in the foreign-exchange market shifts left.