Classical economists and monetarists perceive
A. investors' expectations about returns on investment as unstable.
B. large investment swings as responses to small changes in interest rates.
C. that the best way to cure unemployment is to start a war.
D. that the proper cure for unemployment is active fiscal policy.
B. large investment swings as responses to small changes in interest rates.
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A drop in the user cost of capital will lead to an equal ________ in the MPK of profit-maximizing firms, requiring a ________ v*, thus ________ gross investment
A) drop, higher, boosting B) drop, lower, dampening C) drop, lower, boosting D) rise, higher, dampening E) rise, lower, boosting
Even today, individuals distrust the outcome of free markets, as is evidenced by the protests against the construction of Walmarts across the nation
Indicate whether the statement is true or false
A cubic cost function implies:
A) a U-shaped average variable cost curve. B) a U-shaped marginal cost curve. C) a U-shaped average cost curve. D) all of the above
How is it possible to have a separation between ownership and control of a major corporation? What specific type of market imperfection can cause this?
What will be an ideal response?