Long-run average cost is never greater than short-run average cost because in the long run,
A) capital costs equal zero.
B) the firm can move to the lowest possible isocost curve.
C) wages always increase over time.
D) wages always decrease over time.
B
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A country's balance of payments accounts records its
A) international exports and imports and nothing else. B) international trading, borrowing, and lending. C) tax receipts and expenditures. D) tariffs and nontariff revenue and government purchases. E) tariff receipts and what it pays in tariffs to other nations.
If the nominal interest rate parity condition is not met,
A) imports will exceed exports. B) the return from holding domestic assets must exceed the expected return from holding foreign assets. C) the return from holding domestic assets must be less than the expected return from holding foreign assets. D) the return from holding domestic assets must be greater or less than the expected return from holding foreign assets.
During the financial crisis of 2007-2009, why did the Federal Reserve begin to utilize various types of unconventional monetary policy?
a. the federal funds rate had already been increased as much as possible b. the discount rate had already been increased as much as possible c. the federal funds rate had already been reduced to zero d. the discount rate had already been reduced to zero
A country’s level of productivity determines its
A. productivity growth rate. B. rate of population growth. C. current standard of living. D. future income potential.