Among potential stores of value, money
A) offers the highest rate of return.
B) increases in value during periods of inflation.
C) provides more services than the other assets.
D) has the advantage of being the most liquid asset.
D
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The rightward shift of the RS curve will lead to a ________ in the real interest rate, ________ in investment, and ________ in aggregate demand
A) fall; an increase; a decrease B) rise; an increase; an increase C) rise; a decrease; a decrease D) fall; an increase; an increase E) rise; an increase; a decrease
The above figure illustrates a perfectly competitive firm. If the market price is $40 a unit, to maximize its profit (or minimize its loss) the firm should
A) shut down. B) produce more than 10 and less than 30 units. C) produce 30 units. D) produce more than 30 units and less than 40 units.. E) produce 40 units.
In an oligopoly with a collusive agreement, the total industry profits will be smallest when
A) all firms comply with the agreement. B) one firm cheats on the agreement and the other firms do not cheat. C) all firms cheat on the agreement. D) the firms act as a monopoly.
The impact lag is the time between
A) a change in the money supply and a change in interest rates. B) a change in the money supply and a change in GDP. C) the use of a Federal Reserve tool and its effect on GDP. D) the use of a Federal Reserve tool and its effect on the money supply.