Where does the interest rate fit into the accelerator hypothesis of investment?
A) It helps determine the error-learning parameter, j.
B) It helps determine the ratio of desired capital to expected sales, v*.
C) It helps determine the depreciation ratio of capital stock to replacement investment.
D) Nowhere: the hypothesis says that investment is independent of the interest rate.
B
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The accompanying graph depicts demand.
At point A, demand is:
A. perfectly elastic. B. inelastic. C. elastic. D. unit elastic.
If the United Mine Workers successfully negotiates a wage that is higher than the competitive wage,
a. an excess demand for labor is created b. a surplus of labor is created c. the demand for labor increases d. the supply of labor decreases e. the quantity of labor demanded increases
Regardless of quantity in long-run equilibrium, the competitive price-taker market price cannot exceed the
a. long-run average cost of supplying that quantity. b. total variable cost of supplying that quantity. c. long-run total cost of supplying that quantity. d. minimum long-run marginal cost of supplying that quantity.
If a country's purchases of foreign assets exceeds foreign purchases of domestic assets, that country has
a. positive net exports and positive net capital outflows. b. positive net exports and negative net capital outflows. c. negative net exports and positive net capital outflows. d. negative net exports and negative net capital outflows.