Looking only at the asset market, an increase in output would cause
A) the LM curve to shift down and to the right.
B) the LM curve to shift up and to the left.
C) an increase in the real interest rate along the LM curve.
D) a decrease in the real interest rate along the LM curve.
C
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If the government collects taxes to pay for expenditures of an equal amount, bank reserves
A) are unaffected. B) rise by an equal amount. C) rise by a multiple amount. D) fall by an equal amount.
Use the figure below to answer the following question.
If a price floor in this market is set at P2, then consumer surplus equals area
A. a + b + d. B. b. C. a. D. a + b.
When we solve the firm's dual production problem (i.e., maximize output subject to a cost constraint) by the method of Lagrange multipliers, the optimal value of the Lagrange multiplier equals the:
A) marginal product per unit cost of each variable input. B) marginal product of capital. C) marginal product of labor. D) marginal cost of production.
Seemingly positive disagreements often have normative origins
a. True b. False