A hike in the federal funds rate results in ________ in the real interest rate, which leads to ________ in investment
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease
E) a decrease; no change
B
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In a perfectly competitive market, transient economic profit can be earned by
a. the firms that hire the most employees b. the last firm to enter the market c. those firms that supply low-income neighborhoods d. the first firm to adopt a new technological advance e. those firms that use the most capital-intensive methods of production
When OPEC raised the price of crude oil in the 1970s, it caused the
a. demand for gasoline to increase. b. demand for gasoline to decrease. c. supply of gasoline to increase. d. supply of gasoline to decrease.
Which of the following are taxed?
a. both corporate profits and dividends shareholders receive b. corporate profits but not dividends shareholders receive c. dividends shareholders receive but not corporate profits d. neither corporate profits nor dividends shareholders receive
If the income elasticity of a good is greater than zero, we say that the good is a:
A. normal good. B. inferior good. C. complementary good. D. substitute good.