The M2 definition of money includes demand deposits.
Answer the following statement true (T) or false (F)
True
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Which of the following is not a characteristic of a monopolistically competitive firm in long-run equilibrium?
A) Price is equal to average revenue. B) The firm has excess capacity. C) Marginal revenue is equal to marginal cost. D) Price is equal to marginal cost.
Assume that the multiplier effect for Mexico is 0.85 for an increase in spending by the U.S. government by $1 . Therefore, a $20 billion decrease in spending by the U.S. government results in:
a. a $23.5 billion increase in Mexican real GDP. b. a $133.3 billion decrease in Mexican real GDP. c. a $3 billion decrease in Mexican real GDP. d. a $17 billion decrease in Mexican real GDP. e. a $23.5 billion decrease in Mexican real GDP.
In a closed economy, if the goods market is in equilibrium, national saving is $2 trillion, national consumption is $7 trillion, and government purchases are $2.5 trillion, then GDP equals
A) $7 trillion. B) $9.5 trillion. C) $11.5 trillion. D) Not enough information has been provided to determine the answer.
A decrease in supply will cause a(n)
a. increase in demand b. decrease in demand c. increase in quantity demanded d. decrease in quantity demanded e. decrease in equilibrium price