When total planned real expenditures change due to changes in the cost of borrowing that result from variations in the price level, this is known as the
A) interest rate effect.
B) real-balance effect.
C) open economy effect.
D) aggregate balances effect.
A
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If the market in the figure above is a profit-maximizing single-price monopoly, the producer surplus is the area ________
A) ABH B) BFGH C) ACG D) BDEH E) ACE
an expansionary monetary policy will cause the dollar to...... and will....... Canadian net exports
What will be an ideal response?
If individual A has comparative advantage in painting and individual B has comparative advantage in carpentry, then
A. specialization will not occur, since each does not have a clear absolute advantage. B. individual B will specialize in painting. C. there is a lower opportunity cost (expressed in units of carpentry) for individual A to paint than for individual B to paint. D. individual A must use fewer hours to paint a fence than individual B.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs. B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs. C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs. D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.