Lower nominal interest rates ________ the amount of money demanded and lower real income ________ the amount of money demanded.
A. decrease; decreases
B. increase; does not change
C. increase; increases
D. increase; decreases
Answer: D
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Takeover bids (and the potential for such bids)
a. increase the incentive of corporate managers to perform efficiently. b. increase the likelihood that managers will be able to gain at the expense of stockholders. c. are more likely to occur when a company is producing efficiently and operating profitably. d. serve no useful economic purpose.
When a profit-maximizing firm is earning profits, those profits can be identified by
a. P × Q. b. (MC - AVC) × Q. c. (P - ATC) × Q. d. (P - AVC) × Q.
one of the four main categories of spending identified by John Maynard Keynes is net exports
a. true b. false
The shut-down decision is a short-run decision.
Answer the following statement true (T) or false (F)