Given the expected rate of return on all possible investment opportunities in the economy, a(n)
A. change in the real interest rate will have no impact on the level of investment.
B. increase in the real rate of interest will tend to increase the level of investment.
C. decrease in the real rate of interest will tend to decrease the level of investment.
D. decrease in the real rate of interest will tend to increase the level of investment.
Answer: D
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The risk-shifting problem tends to be __________ for __________ firms than for __________ firms
A) greater; small; large B) greater; large; small C) the same; large; small D) None of the above.
A monopolist is maximizing profit at an output rate of 1,000 units per month. At this output rate, the price that its customers are willing and able to pay is $8 per unit, average total cost is $5 per unit, and marginal cost is $6 per unit
It may be concluded that at this monthly output rate, marginal revenue is A) $5 per unit, and the monopolist earns zero economic profits. B) $6 per unit, and the monopolist earns economic profits of $2,000 per month. C) $6 per unit, and the monopolist earns economic losses of $1,000 per month. D) $6 per unit, and the monopolist earns economic profits of $3,000 per month.
Empirical evidence suggests that the federal budget has remained more or less in surplus between 1990 and 2002
a. True b. False Indicate whether the statement is true or false
The natural rate of unemployment is the desirable rate of unemployment for an economy
a. True b. False Indicate whether the statement is true or false