According to liquidity preference theory, an increase in the price level causes the interest rate to
a. increase, which increases the quantity of goods and services demanded.
b. increase, which decreases the quantity of goods and services demanded.
c. decrease, which increases the quantity of goods and services demanded.
d. decrease, which decreases the quantity of goods and services demanded.
b
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When Jamie, a U.S. citizen, purchases a wool jacket made in Ireland, the purchase is
a. both a U.S. and Irish import. b. a U.S. import and an Irish export. c. a U.S. export and an Irish import. d. neither an export nor an import for either country.
Figure 11.4Figure 11.4 depicts demand and costs for a monopolistically competitive firm. If the firm's demand curve shifts to the left as more firms enter the market:
A. the firm's profit will be smaller at the new profit maximizing output level. B. the firm's profit will be greater at the new profit maximizing output level. C. the firm's profit will remain the same at the new profit maximizing output level. D. There is not sufficient information.
When recent college graduates begin looking for their first professional work in June, the unemployment rate
A. increases as the labor force decreases. B. increases as the labor force increases. C. decreases as the labor force decreases. D. decreases as the labor force increases.
Which of the following statements about natural monopoly is correct?
A) Governments regulate natural monopolies in order to ensure that costs of production are minimized. B) Governments regulate natural monopolies in order to ensure that the firm earns a normal profit. C) Governments regulate natural monopolies in order to prevent them from making profits. D) Governments regulate natural monopolies in order to keep their workers from earning wages that are too high.