Suppose that investment is very responsive to interest rates, so that even a small change in interest rates has a substantial effect on investment. In this case, expansionary monetary policy that results in a modest drop in interest rates will:
A. increase output only slightly.
B. not increase output.
C. decrease output sharply.
D. increase output significantly.
Answer: D
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Refer to the scenario above. If the equilibrium price charged by the firm in the short run is $170, the firm will earn ________
A) a profit of $10 per unit B) a profit of $25 per unit C) a profit of $0 per unit D) a profit of $30 per unit
Icy Treats is a large Italian ice dessert chain with franchises located throughout the United States. Icy Treats' advertising will likely focus on which of the following?
A) promoting Icy Treats locations in a specific state B) promoting a struggling Icy Treats location in Memphis, Tennessee C) promoting a successful Icy Treats location in Memphis, Tennessee D) promoting the enjoyment of eating Icy Treats' icees
If renting videos is an inferior good, demand for this service will rise when consumer income falls
a. True b. False Indicate whether the statement is true or false
The United States has never suffered through periods of hyperinflation in its history
a. True b. False Indicate whether the statement is true or false