A decrease in sales expectations may shift the AD curve to the
A. Right, causing less undesired investment.
B. Right, causing more undesired investment.
C. Left, causing less undesired investment.
D. Left, causing more undesired investment.
Answer: D
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People will typically buy more of a product if the price increases.
a. true b. false
A graphical plot of consumption expenditures against disposable income for the US over the past 20 years shows
a) no apparent relationship between consumption and disposable income b) consumption remaining roughly constant as disposable income rises c) consumption falling as disposable income rises d) consumption rising as disposable income has fallen e) consumption rising almost proportionately as income rises
Which of the following is a tool used by the Fed in the conduct of monetary policy?
A) changes in the prime rate B) issuing new government bonds and retiring old ones C) buying and selling corporate bonds D) buying and selling federal government bonds
To maximize profit, a monopolistically competitive firm will produce where
A. marginal revenue equals price. B. marginal revenue equals marginal cost. C. price equals average total cost. D. price equals marginal cost.