If the Fed's goal is to keep the interest rate fixed, a contractionary fiscal policy must be accompanied by ________ monetary policy that shifts the LM curve to the ________
A) an expansionary, right
B) an expansionary, left
C) a contractionary, right
D) a contractionary, left
D
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The best alternative use of a resource is referred to as its:
A) sunk cost. B) market price. C) marginal utility. D) opportunity cost.
As of 2012, carried interest was taxed as:
A) capital gains B) dividends C) interest income D) ordinary income
In general, microeconomic theory assumes that firms attempt to maximize the difference between
a. total revenue and accounting costs. b. price and marginal cost. c. total revenues and economic costs. d. economic costs and average cost.
Natural oligopolies occur when
a. the government establishes a market with a few large producers b. the market output could be produced at a higher cost by several large firms rather than many small firms c. there are no barriers to entry d. the total market output could be produced at a lower cost by several large firms rather than many small firms e. one large firm can produce the total market output at a lower cost than several smaller firms could