Refer to Figure 13-3. Suppose the economy is at point C. If investment spending decreases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
A
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Describe the prisoners' dilemma game and explain why the Nash equilibrium delivers a bad outcome for both players
What will be an ideal response?
How can bonuses to exceptional employees be considered economic rents?
On the diagram to the right a movement from A to B (downward movement on the demand curve) represents a
A. decrease in demand B. change in demand C. change in quantity demanded D. movement up the demand curve
Suppose the government of South Island has fixed the value of its currency, the Islandia, at $0.50 per Islandia, but the market equilibrium value of the Islandia is $0.25 per Islandia. In order to maintain the official value of the Islandia the Central Bank of South Island must either ________ domestic interest rates or purchase Islandia, which causes the supply of international reserves to ________.
A. lower; decrease B. lower; increase C. raise; increase D. raise; decrease