The notion that the value of money is determined by the overall quantity of money in existence is known as the:
A. money quantity theory.
B. quantity theory of money.
C. price level theory.
D. level theory of prices.
Answer: B
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If Smith believes the economy is self-regulating, then Smith
A) is less likely to advocate expansionary fiscal policy when the economy is in a recessionary gap than Jones, who believes the economy is not self-regulating. B) is more likely to advocate expansionary fiscal policy when the economy is in a recessionary gap than Jones, who believes the economy is not self-regulating. C) will believe that there is zero crowding out, too. D) will believe that wages are inflexible downward, too. E) b and d
Who was the leader of India's economic reforms?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. When a competitive firm sees losses because the product falls below the minimum average cost of production at its current plant, it may decide to expand if there are economies of scale. 2. When a competitive firm sees the price fall below the minimum possible average total cost in the long run, then it will decide that it could do better by moving to a different industry. 3. Suppose that a competitive firm finds that in its short-run equilibrium situation, its marginal cost is higher than its average total cost. If things are not expected to change and there are constant returns to scale, then the firm will exit the industry in the long run. 4. It is possible for a competitive firm that is maximizing profits in the short run to make its profits even bigger in the long run by expanding its plant. 5. In long-run equilibrium, a competitive firm produces where P = MR = MC = minimum ATC and the firm earns normal economic profits.
What are the factors that change the supply of saving and shift the supply of loanable funds curve?
What will be an ideal response?