The above figure shows a firm in monopolistic competition. At the profit maximizing level of output
A) the firm is making a positive economic profit.
B) the firm incurs an economic loss.
C) the firm is making zero economic profit.
D) this firm would choose to shut down in the short run.
C
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Households affected by a "liquidity constraint" have consumption ________ sensitive to changes in current income that is predicted by the LCH, and a saving ratio that may not ________ in a recession
A) less, rise B) less, fall C) more, rise D) more, fall
The term "near monies" refers to which of the following? a. Savings and small time deposits, which (unlike currency and checkable deposits) are not immediately available as money in a transaction. b. Mexican pesos and Canadian dollars – the money used by our nearest neighbors
c. Counterfeit money that closely approximates the appearance of real money. d. None of the answers above are correct.
In the Keynesian model, the larger the marginal propensity to consume, the:
a. larger the multiplier. b. larger the marginal propensity to save. c. higher the income level of the economy. d. smaller the change in income derived from a given change in government spending.
Borrowed funds are used in financing every component of GDP
a. True b. False Indicate whether the statement is true or false