U.S. investment is financed from
A) private saving, government budget surpluses, and borrowing from the rest of the world.
B) private saving, government budget deficits, and borrowing from the rest of the world.
C) private borrowing, government budget deficits, and lending to the rest of the world.
D) private saving and borrowing from the rest of the world only.
A
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In the long run, a profit-maximizing monopolistically competitive firm sells at a price that is:
A. equal to average total cost, but higher than marginal cost. B. equal to marginal cost and marginal revenue. C. equal to average total cost, but lower than marginal cost. D. equal to demand, but higher than average total cost and marginal cost.
An example of price discrimination is the price charged for:
a. troll dolls. b. college admission. c. textbooks. d. diamonds.
Which of the following policy actions by the Fed would cause the money supply to decrease?
a. An open-market purchase. b. A decrease in required reserve ratios. c. A decrease in the discount rate. d. None of these.
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP remains the same and reserve-related (central bank) transactions becomes more positive (or less negative). b. Real GDP falls and reserve-related (central bank) transactions remains the same. c. Real GDP and reserve-related (central bank) transactions remain the same. d. Real GDP rises and reserve-related (central bank) transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.