According to liquidity preference theory, the money-supply curve would shift rightward
a. if the money demand curve shifted right.
b. if the Federal Reserve chose to increase the money supply.
c. if the interest rate increased.
d. All of the above are correct.
b
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The CPI is based on an:
A. average of the goods and services purchased by "urban consumers." B. average of the goods and services purchased by "rural consumers." C. average of the two baskets of goods and services purchased both by "urban" and by "rural" consumers. D. aggregated average meant to reflect the statistical average consumption.
When a profit-maximizing firm makes a decision to employ a worker, that decision is based on: a. the individual contribution that the worker makes to the profit of the firm. b. the average productivity of the firm's labor force
c. the familial relationship between the employer and the employee. d. the total output produced by the firm.
You are the manager of a firm that sells its product in a competitive market with market (inverse) demand given by P = 50 ? 0.5Q. The market equilibrium price is $50. Your firm's cost function is C = 40 + 5Q2. Your firm's marginal revenue is:
A. MR(Q) = 50 ? Q. B. $50. C. MR(Q) = 10Q. D. There is insufficient information to determine the firm's marginal revenue.
If a country increases its savings rate, the steady-state equilibrium level of:
A) GDP will increase. B) investment will decrease. C) capital stock will decrease. D) efficiency units of labor will increase. Consider two economies: A and B. Both the countries have access to the same aggregate production function and have the same population and same efficiency units of labor, but have different saving rates. The savings rate is higher in country A in comparison to country B.