In a monopoly, the Herfindahl Index is
a. 100.
b. 10,000.
c. 0.
d. 10.
b. 10,000.
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The value of the multiplier ________ as the marginal propensity to save decreases
A) decreases B) increases C) is constant D) becomes negative
If the desired reserve ratio rises, the money multiplier
A) decreases. B) increases. C) stays the same. D) probably changes but more information is needed to determine if it increases or decreases.
A monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing and becoming more elastic in the long run as new firms move into the industry until
A) the original firm is driven into bankruptcy. B) the firm's demand curve is perfectly elastic. C) the firm exits the market. D) the firm's demand curve is tangent to its average total cost curve.
Currency traders expect the value of the dollar to rise. What effect will this have on the demand for dollars and the supply of dollars in the foreign exchange market?
A) Demand for dollars will decrease, and supply of dollars will increase. B) Demand for dollars will decrease, and supply of dollars will decrease. C) Demand for dollars will increase, and supply of dollars will increase. D) Demand for dollars will increase, and supply of dollars will decrease.