Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables.
b. The quantity of real loanable funds per time period rises, and reserve-related (central bank) transactions remains the same.
c. The quantity of real loanable funds per time period rises, and reserve-related (central bank) transactions become more positive (or less negative).
d. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions become more negative (or less positive).
e. The quantity of real loanable funds per time period and reserve-related (central bank) transactions remain the same.
.B
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Which of the following activities increases the demand for union labor?
A) a decrease in the minimum wage B) a decrease in immigration C) an increase in the union wage D) an increased desire by consumers to buy imports
Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units. Which of the following are true?
a. FC = $400 b. FC = $100 c. MC = $30 d. MC = $300
The price of cotton rises. What happens in the market for cotton shirts?
A) The equilibrium price falls and the equilibrium quantity rises. B) The equilibrium price rises and the equilibrium quantity falls. C) The equilibrium price and quantity rise. D) The equilibrium price and quantity fall.
Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 
Figure 15.5 Refer to Figure 15.5. Assume The Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. If the firm produces the profit-maximizing level of output and sells it at the profit-maximizing price, the firm ________ of $400.
A. earns a profit B. has total revenue C. suffers a loss D. has total cost