A decrease in the money supply will immediately __________ the __________ interest rate, according to the "liquidity effect."
A) raise; natural
B) raise; nominal
C) lower; natural
D) lower; nominal
B
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In the Keynesian model, firms are best characterized as
A) perfectly competitive. B) irrational. C) price takers. D) monopolistically competitive.
A current account deficit is
A) good because a country wants to own the others. B) bad because every country should have a surplus. C) good because it allows to smooth consumption. D) it does not matter.
Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) There is one Nash equilibrium in this game.
B) There are two Nash equilibria in this game.
C) There are no Nash equilibria in this game.
D) There are three Nash equilibria in this game.
To find the profit maximizing level of output, a firm finds the output level where
A) price equals marginal cost. B) marginal revenue and average total cost. C) price equals marginal revenue. D) all of the above E) none of the above