Ceteris paribus, a decline in the general price level in the United States will make foreign-produced goods relatively more expensive to the U.S. residents and increase the aggregate demand of domestic goods
a. True
b. False
Indicate whether the statement is true or false
True
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The trade model described in the text demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage
In reality we do not see complete specialization in production. State three reasons why this is case.
Which of the following properties is common to a partnership business?
a. Limited liability b. Centralized ownership and management c. Continuity and unlimited existence of the business d. Co-ownership of contributed assets
The supply curve of money is horizontal at the market interest rate.
a. true b. false
A monopoly will maximize profits at the level of output at which
A. MC = P. B. MR = AFC. C. MR = MC. D. MC = ATC.