If an oligopolistic manufacturer believes that he faces a kinked demand curve for his product, he thinks his competitors will ____ if he lowers his price and ____ if he raises his price
a. lower their prices; raise their prices.
b. lower their prices; not raise their prices
c. not lower their prices; raise their prices
d. not lower their prices; not raise their prices
b
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Refer to the above figure. Point B is known as
A) a peak. B) a recession. C) an expansion. D) a contraction.
The amount of U.S. exports to the rest of the world is primarily determined by _____
a. the real disposable income in the United States b. the real disposable income in other nations c. the real interest rate in other nations d. the real interest rate in the United States e. the government budget deficits in other nations
If you put $500 into a checking account, the immediate effect (do not consider the money multiplier which we will study in the next chapter) is:
a. M1 rises, M2 rises, and the monetary base remains the same. b. M1, M2, and the monetary base rise. c. M1, M2, and the monetary base fall. d. M1, M2, and the monetary base remain the same. e. M1 rises, M2 falls, and the monetary base remains the same.
Is it possible for a normal good to be a Giffen good? Briefly explain