If technological change increases the profitability of new investments for firms, then the ________ curve for loanable funds will shift to the ________
A) demand; right B) demand; left C) supply; right D) supply; left
A
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Fiscal actions to eliminate a recession are likely to decrease the federal budget deficit
Indicate whether the statement is true or false
The extra benefit that results from carrying out one additional unit of an activity is the ________ of the activity.
A. economic benefit B. average benefit C. total benefit D. marginal benefit
Whenever the balance on the current account (CA) is negative, it indicates that:
a) the trade deficit b) total spending (GNE) in the economy is greater than income (GNDI) and is financed by barrowing from abroad c) domestic investment is less than national savings d) income (GNDI) is greater than total spending (GNE) in the economy and the country is a net lender to the rest of the world
Suppose we observe that as a firm increases its price its total revenue decreases. Which of the following is a possible value of its price elasticity of demand?
A. 0.25 B. 0.5 C. 1 D. 2