If restrictive monetary policy results in a slowdown in the domestic inflation rate and higher real interest rates, other things constant, the
a. nation's currency will appreciate.
b. nation's currency will depreciate.
c. nation will run a balance of trade surplus.
d. nation will run a capital account deficit.
A
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Black markets can generally be eliminated when price ceilings are enacted.
Answer the following statement true (T) or false (F)
Over the next three years, a firm is expected to earn economic profit of $200,000 in the first year, $300,000 in the second year, and $250,000 in the third year. After the end of the third year, the firm goes out of business. If the risk-adjusted discount rate is 9 percent for each of the next three years,
1. The firm can be sold today for a price of $______________. 2. The value of the firm is $______________.
Which of the following would not shift the demand curve for mp3 players?
a. a decrease in the price of mp3 players b. a fad that makes mp3 players more popular among 12-25 year olds c. an increase in the price of digital music downloads, a complement for mp3 players d. a decrease in the price of satellite radio, a substitute for mp3 players
Monopolistic competition is an inefficient market structure because
a. marginal revenue equals marginal cost. b. it has a deadweight loss, just as monopoly does. c. long-run profits are zero due to free entry. d. All of the above are correct.