Using the standard 45-degree line diagram, how does a decrease in investment spending effect the expenditure schedule?
a. It increases the slope of the expenditure schedule.
b. It decreases the slope of the expenditure schedule.
c. It shifts the expenditure schedule downward.
d. It shifts the expenditure schedule upward.
c
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In conducting monetary policy, how has the Federal Reserve enhanced its credibility?
A) by revealing the Fed's target for the federal funds rate B) by marketing and increased expenditure on advertising C) by not following through with changes it has announced D) by keeping the minutes of the open market committee meetings confidential
A price taker is a buyer or seller who:
A. can affect the market price, but only when collaborating with other buyers or sellers. B. takes the market price and chooses to increase or decrease it. C. takes prices in the area and averages them together to set the price for his/her good. D. cannot affect the market price.
Juanita goes to the Hardware Emporium to buy a new circular saw. She is willing to pay $120 for a new saw, but buys one on sale for $85. Juanita's consumer surplus from the purchase is
A) $35. B) $85. C) $120. D) $205.
The assumption under perfect competition of a "homogeneous product" means that
A. that no firm can charge more than another for its product. B. the good one firm produces is very different than the good another produces. C. the good one firm produces is exactly the same as the good another firm produces. D. that no buyer will pay more for one firm's good than another's.