When a firm is experiencing diseconomies of scale, it should
A. expect its average total cost to increase if it reduces the scale of its operations.
B. expect its average total cost to decrease if it reduces the scale of its operations.
C. lower its price to attract new consumers.
D. expect its average total cost to remain unchanged if it changes the scale of its operations.
Answer: B
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Mortgage-backed securities are:
A. tradable assets made up of packages of individual mortgages. B. investments that people bought based on the equity of their homes. C. assets that were purchased based on the leveraged value of people's homes. D. securities that are often purchased by homeowners.
When did Keynes write his great work, The General Theory of Employment, Interest, and Money?
a. During the 1920s b. During the 1930s c. During the 1940s d. During the 1950s
The slope of the aggregate demand curve illustrates that real GDP demanded will increase when
a. the price level rises. b. the price level falls. c. real income rises. d. real income falls.
An increase in the rate of interest would increase
A. the opportunity cost of holding money. B. the transactions demand for money. C. the asset demand for money. D. the price of bonds.