Liquidity preference refers to the theory of
A) money demand.
B) consumption.
C) investment.
D) expectations.
A
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The key to present value calculations is that they
A) are appropriate only for funds in the same time period. B) provide a common unit for measuring funds at different times. C) provide accurate answers only in a low-inflation environment. D) provide accurate answers only in a high-inflation environment.
The use of foreign exchange reserves to keep exchange rates constant over time is called
A) a fixed exchange rate system. B) the Bretton Woods system. C) a fiscal fix. D) a floating exchange rate system.
Would a profit-maximizing firm sell where demand is inelastic?
a. No, this would not follow the rule of MC = MR. b. No, the firm could not profitably raise price. c. Yes, the firm could profitably lower price to attract sales. d. Yes, in this case there are few substitutes for the good.
The long-run equilibrium position of the monopolistic ally competitive firm occurs at a point where average costs are:
A. Constant B. Increasing C. Decreasing D. At their minimum point