Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. lower; higher
D. higher; potential
Answer: D
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________ is the corporation's promise to repay the holder a fixed sum of money on the designated maturity date plus pay the lender periodic interest until that date
a. A mutual fund b. A corporate stock c. A bond d. An annuity
Equilibruim Quantity
What will be an ideal response?
Given: M = 800, V = 6, P = 4, and Q = 1,200. According to the crude quantity theory of money, if M rises to 1,000, how much would V, P, and Q be?
What will be an ideal response?
Which of the following is most likely to be an example of economies of scale?
A. The per-unit costs on Excel Publishing Company's manuals fall because it adopted a new technology after receiving a large order from the government. B. Widget Manufacturing doubled its production by opening a new plant that was identical to its old plant. C. The XYZ Co. increased production 25 percent after a 30 percent increase in all inputs. D. Alpha-Beta Inc. raised its price by 10 percent after a 5 percent increase in production costs.