Crowding out will lead to a decrease in supply of loanable funds, a decrease in real interest rates, and subsequently a decrease in spending by households and firms
a. True
b. False
Indicate whether the statement is true or false
False
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Insurance deductibles __________ the __________ problem of insurance coverage.
A. are meant to reduce; adverse selection B. are meant to reduce; moral hazard C. unintentionally worsen; adverse selection D. unintentionally worsen; moral hazard
Refer to the above figure. Point C is known as
A) a peak. B) a trough. C) an expansion. D) a contraction.
Marginal revenue can become negative for
a. both competitive and monopoly firms. b. competitive firms but not for monopoly firms. c. monopoly firms but not for competitive firms. d. neither competitive nor monopoly firms.
The greater the the number and closeness of substitutes available between monopolistically competitive firms
A) the greater the ability of a firm to raise its price above the price of close substitutes. B) the smaller the ability of a firm to raise its price above the price of close substitutes. C) the more inelastic the demand curve. D) the greater the positive economic profits for a single firm.