An open market purchase by the Fed causes the value of the dollar to:
A. rise, increasing net exports.
B. rise, reducing net exports.
C. fall, increasing net exports.
D. fall, reducing net exports.
Answer: C
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Does a competitive long-run equilibrium require cost-minimization?
A) Yes, if firms fail to be as efficient as their competitors, they are driven out of the market. B) No, in the long run, firms make zero profits. C) Yes, if they didn't, even less efficient firms would enter the industry. D) No, because competition ensures their survival.
Which of the following causes a leftward shift in the short-run aggregate supply curve?
a. An increase of goods prices while nominal incomes are unchanged. b. An increase of full-employment real GDP. c. An increase of personal consumption expenditures while the price level is unchanged. d. An increase in nominal incomes.
Milly Miser removes $250,000 from her mattress and opens a checking account. This single transaction immediately increases the money supply by
A. $250,000. B. $50,000. C. $0. D. ?$250,000.
In a market, social surplus is maximized if consumers' willingness to pay for the good equals the ________
A) marginal private cost of producing the good B) marginal external cost of producing the good C) marginal social cost of producing the good D) opportunity cost of producing the good