If a cartel can earn a profit, it will increase production as long as
a. MR > MC
b. MR > ATC
c. MC > MR
d. MR < AR
e. MR > AVC
A
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
If you have a mortgage on your house at 6 percent and the inflation rate when the mortgage was acquired was 3 percent but has since increased and is now 8 percent per year; the current real interest rate is
A) -2 percent per year. B) 8 percent per year. C) 6 percent per year. D) 0 percent per year. E) 14 percent per year.
The argument that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is known as the
A) national security argument. B) diversity argument. C) infant-industry argument. D) environmental protection argument. E) national youth protection argument.
The sale of $1 billion of securities to a bank or some other business by the Fed is an example of
A) a last resort loan. B) a multiple contraction of the quantity of money. C) an open market operation. D) a change in the required reserve ratio.