The level of household savings constrains firm investment.
Answer the following statement true (T) or false (F)
True
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The need for exchange controls may arise from
(a) overvalued exchange rates. (b) export promotion policies. (c) a current account surplus. (d) all of the above.
If the interest rate increased, which of the following would occur?
a. Nothing would occur. b. The consumption-income line would shift downward. c. The consumption-income line would shifts upward. d. There would be an rightward movement along the consumption-income line. e. There would be a leftward movement along the consumption-income line.
The MR = MC rule can be restated for a purely competitive seller as P = MC because:
A. each additional unit of output adds exactly its price to total revenue. B. the firm's average revenue curve is downsloping. C. the market demand curve is downsloping. D. the firm's marginal revenue and total revenue curves will coincide.
Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 
Figure 15.5 Refer to Figure 15.5. Assume the Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. To maximize profits in the short run, this firm should set a price of
A. $36. B. $44. C. $46. D. $50.