In a long-run equilibrium, both perfectly competitive markets and monopolistically competitive markets have price equal to average total cost
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
If the required reserve ratio is .25, demand deposits are $400 million, and total reserves are $150 million, then excess reserves are
A) $25 million. B) $50 million. C) $75 million. D) $125 million.
The federal funds market is the market where:
a. the federal government raises funds to cover its budget deficit. b. the Federal Reserve System makes loans to commercial banks. c. commercial banks with excess reserves make loans to commercial banks seeking reserves. d. commercial banks make loans to the Federal Reserve.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and nominal value of the domestic currency falls. b. The real risk-free interest rate falls, and nominal value of the domestic currency falls. c. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same. d. The real risk-free interest rate falls, and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
A table that shows the possible payoffs each firm earns from every combination of strategies by all firms is called
A) an earnings table. B) a payoff table. C) a payoff matrix. D) a strategic matrix.