Monetarists believe that the quantity of money should be increased at an increasing rate
Indicate whether the statement is true or false
FALSE
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Firms should lower the prices on their goods
a. If the demand for the product is elastic b. If it acquires a firm selling a complement good c. If it acquires a firm selling a substitute good d. Both a and b
Bond prices in the marketplace will fall when
a. interest rates fall. b. the company is losing money. c. interest rates rise. d. the company is making money.
All else being equal, if European firms switch from U.S. produced software to software produced in India, the equilibrium value of the U.S. dollar will:
A. fall. B. become fixed. C. rise. D. either rise or fall depending on whether the supply or demand for dollars changes more.
A perfectly competitive industry's market price is found by
A) finding the point on the market demand curve where the largest number of units will be purchased. B) locating the intersection of the market demand and market supply curves. C) the horizontal summation of all the industry firms' individual supply curves. D) identifying the price at which each firm realizes its largest economic profit.