Assume the price elasticity of demand for a good is -3. In this case, a decrease in price would result in marginal revenue of (2/3)P
Indicate whether the statement is true or false
TRUE
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A current account surplus implies that
A) the country is a net lender with the rest of the world. B) the country is running a net capital account surplus. C) foreign investment in domestic securities is at very low levels. D) All of the above.
An increase in the interest rate will cause
A) planned investment spending to increase. B) planned investment spending to decrease. C) the investment function to shift out. D) the investment function to shift in.
The U.S. trade deficits of the late 1990s were due primarily to low saving rates
a. True b. False Indicate whether the statement is true or false
When the price level falls
A. aggregate demand shifts to the left. B. all prices of individual goods and services decrease. C. aggregate demand shifts to the right. D. aggregate quantity demanded increases.