Keynes believed
A. increases in investment expenditures are due to lower interest rates.
B. increases in investment expenditures are due to high profit expectations.
C. increases in investment expenditures are due to excessive funds in the loanable funds market.
D. since supply creates its own demand, increases in investment expenditures creates additional supply and therefore more demand and earnings for the businesses.
B. increases in investment expenditures are due to high profit expectations.
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Explain how a specific tax equal to the marginal harm of pollution can increase or decrease total welfare in a monopoly market
What will be an ideal response?
The LM curve shows that, with a fixed supply of money, as GDP rises, the demand for money will ____ and the rate of interest will ____.
A) rise; rise B) fall; fall C) rise; fall D) fall; rise
Arbitrage equalizes rates of return across similar investments because:
A. arbitrage also equalizes the prices of the assets. B. investors prefer diversity. C. investors will want to replace lower rate of return assets with those generating higher rates of return. D. investors will want to replace higher rate of return assets with those generating lower rates of return.
Which of the following algebraic expressions is inaccurate?
A. TC=TVC+TFC B. ATC=AFC-AVC C. AFC=ATC-AVC D. MC=TC(Q)-TC(Q-1)