If a firm decreases production, then its:
A. variable costs rise.
B. fixed costs stay the same.
C. total costs increase.
D. All of these are true.
B. fixed costs stay the same.
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Suppose that at a price of $55, 100 units were sold while at a price of $33, 153 units were sold. Without calculating the price elasticity value, can you determine whether demand is elastic, unit elastic, or inelastic? Explain your answer
What will be an ideal response?
The financial crisis of 2007-2009 worsened after the failure of which firm?
A) General Motors B) Lehman Brothers C) Bear Stearns D) American International Group (AIG)
In September of 2007, the Federal Reserve Board Open Market Committee voted to lower interest rates for the first time that year. Explain how lower interest rates affect the aggregate demand curve
What will be an ideal response?
The sum of the Fed's monetary liabilities and the U.S. Treasury's monetary liabilities is called
A) the money supply. B) currency in circulation. C) bank reserves. D) the monetary base.