The natural rate of interest is the interest rate that
A) is determined by the intersection of the IS and LM curves.
B) equates investment and saving at full employment.
C) equates the supply and demand for money.
D) is changed only by changes in the money supply.
B
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In perfect competition, when market demand decreases, explain how the price of the good and the output and profit of each firm changes in the short run
What will be an ideal response?
What is the difference between positive and normative analysis?
What will be an ideal response?
When costs spill over to third parties, there is a(n)
A) cost overrun. B) excessive competition. C) negative externality. D) government subsidy.
Foreign direct investment is when:
A. when a foreign government directly invests into a firm. B. investors buy foreign financial assets like stocks, bonds, or government securities. C. investment is funded by foreign sources but operated domestically. D. a firm runs part of its operation abroad or invests in another company abroad.