Other things the same, a decrease in the U.S. interest rate
a. induces firms to invest more.
b. shifts money demand to the left.
c. makes the U.S. dollar appreciate.
d. increases the opportunity cost of holding dollars.
a
You might also like to view...
Which of the following happens when new firms enter a monopolistically competitive market structure?
A) The existing firms face higher demand. B) The existing firms face relatively inelastic demand curves. C) The existing firms earn higher profits. D) The existing firms earn lower profits.
Which of the following displays rivalry and excludability in consumption?
A) public goods B) private goods C) quasi-public goods D) common resources
If a firm is making zero economic profit, it
a. will be forced to shutdown and leave the market. b. will also generally be making zero accounting profit. c. is doing as well as typical firms in other markets. d. will not survive in the long run.
Suppose that your income during Year X was $50,000, and the CPI for Year X was 150 (base year = Z=100). Back in Year Z your income was $30,000. Has your real income (in year z dollars) increased or decreased from Z to year X? By how much?
A. Increased by $5,000. B. Increased by $3,333. C. Decreased by $5,000. D. Decreased by $3,333.