A local business sells its product for $40 each in a competitive price-taker market. At its present rate of output, it's marginal cost is $40, average variable cost is $45, and average total cost is $60 . The business should
a. increase output
b. reduce output but not to zero
c. maintain the present rate of output
d. shut down
e. raise the price
D
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How would expansionary monetary policy affect the AD curve?
A) It would become more static. B) It would shift to the left. C) It would fall. D) It would shift to the right.
A bank's required reserves are calculated by multiplying ________
A) its deposits by the required reserve ratio B) the sum of its deposits and cash in its vault by the required reserve ratio C) cash in its vault by the required reserve ratio D) the gold in its vault by the required reserve ratio
An increase in government spending increases the supply of money in our economy
Indicate whether the statement is true or false
Supply is determined by how much suppliers are willing and able to produce.
Answer the following statement true (T) or false (F)