Which of the following will cause the LM curve to shift down?
A) a reduction in the expected future interest rate
B) a reduction in current income
C) a reduction in expected future taxes
D) all of the above
E) none of the above
E
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Incremental benefits refer to the
a. accumulated gains linked to environmental policy b. total social benefits of avoiding ecological damage c. reduction in environmental damages associated with an environmental policy initiative d. none of the above
The European Union's Common Agricultural Policy (CAP) is, in effect
A) a tariff imposed on agricultural exports. B) a tariff imposed on agricultural imports. C) a subsidy that reduces the cost of agricultural exports. D) a subsidy that increases the cost of agricultural exports. E) a quota that limits production of agricultural goods by EU nations.
For the monopoly in the above figure, if the firm is currently producing 700 units, which of the following is correct?
A) It could earn higher profits if it produced more units each day. B) It could earn higher profits if it produced fewer units each day. C) It is maximizing its profits. D) It is incurring a loss.
In an unbalanced oligopoly
a. only two firms make up the oligopoly b. the sales of the leading firms are distributed unevenly c. the sales of the leading firms are distributed evenly d. the sales of the 4 leading firms is less than 50 percent e. the market share of the 4 leading firms equals 100 percent