The rate of return in loanable funds describes the:
A. cost of borrowing.
B. the profit firms should make when investing borrowed funds.
C. interest rate on loans.
D. expected profit that a project will generate per dollar invested.
Answer: D
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The production of electricity creates pollution. When deciding how much electricity to buy, customers ________ the cost of pollution. When deciding how much electricity to buy, producers ________ the cost of pollution
A) take into account; take into account B) do not take into account; do not take into account C) take into account; do not take into account D) do not take into account; take into account E) None of the above answers is correct.
A profit maximizing single-price monopolist sets price equal to marginal cost
Indicate whether the statement is true or false
To keep the U.S. dollar from depreciating against the euro, the U.S. Federal Reserve must:
a. buy euros and sell U.S. dollars. b. buy both euros and U.S. dollars. c. sell euros and buy U.S. dollars. d. sell both euros and U.S. dollars. e. buy U.S. government bonds
Which of the following statements best describes the actions of the economists and policymakers of the Great Recession?
a. The economists and policymakers of the Great Recession era were not content to let the markets recover from recession without taking proactive measures to support consumption and investment. b. The economists and policymakers of the Great Recession era were content to let the markets recover from recession without taking proactive measures to support consumption and investment. c. The economists and policymakers of the Great Recession era were not content to let the markets recover from recession without taking reactive measures to support consumption and investment. d. The economists and policymakers of the Great Recession era were content to let the markets recover from recession without taking reactive measures to support consumption and investment.