The composition of M2 as of December 2010 includes saving deposits at savings banks and credit unions
a. True
b. False
Indicate whether the statement is true or false
True
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If a perfectly competitive firm achieves productive efficiency then
A) it is producing at minimum efficient scale. B) it will raise its price in order to earn an economic profit. C) it is producing the good it sells at the lowest possible cost. D) the price of the good it sells is equal to the benefit consumers receive from consuming the last unit of the good sold.
Cummins, Hubbard, and Hassett studied the effects of taxes on investment by
A. examining what happened to investment when major tax reforms took place. B. raising tax rates on certain businesses and testing their reaction. C. raising tax rates on equipment and reducing tax rates on structures. D. seeing if investment spending is correlated with taxes on investment.
If a firm sells to two distinct identifiable markets and resale is impossible, why is price discrimination more profitable than setting a single price?
What will be an ideal response?
The crowding-out effect is small when firms are ______.
a. pessimistic about the future b. optimistic about the future c. considering sizable future investment d. operating at full-capacity