The LM curve
A) is horizontal.
B) is vertical.
C) slopes downward.
D) slopes upward.
D
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What best describes westward movement of population between 1800-1860?
a. The 1850s was the decade when the largest number of people moved to the west. b. The large increase in and sales in this period was based on speculation. c. Migrants moved to the west because they were "pushed" out of the east, where conditions were getting worse. d. Corn prices were relatively low in the decades when migration to the west was largest.
In a monopolistically competitive scenario, the demand curve for an existing firm ____ when firms exit the industry
a. becomes more inelastic b. becomes vertical c. becomes horizontal d. becomes more elastic
In a fixed exchange rate system,
A. The capital account surpluses must offset current account deficits. B. A country can eliminate a surplus of its currency by eliminating its protectionist barriers to trade. C. A balance-of-payments deficit can be corrected by expansionary fiscal and expansionary monetary policies. D. Excess demand for a currency is eliminated by using foreign exchange reserves to increase demand.
Microeconomics helps explain economic fluctuations, why the economy shrinks and expands and why some of the economy's resources are idle.
Answer the following statement true (T) or false (F)