If investment has a low sensitivity to the interest rate, the IS curve is rather __________, so that monetary policy has a __________ effect on GDP
A) flat; strong
B) flat; weak
C) steep; strong
D) steep; weak
D
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Import restrictions create an incentive to smuggle
Indicate whether the statement is true or false
Pumpkins are grown in New Mexico with the aid of fertilizer. Hence, fertilizer is a partial answer to which of the three economic questions?
What will be an ideal response?
Shares in XM Radio currently sell for $20. If the satellite it plans to launch works well, the share value will increase by $35. If the satellite fails to function, the share price will fall by $5. The expected return of the stock is
a. 25%. b. 50%. c. 75%. d. 100%.
If perfect competitors are making profits
A. new firms will enter the industry and market price will fall. B. new firms will enter the industry and market price will rise. C. firms will leave the industry and market price will rise. D. firms will leave the industry and market price will fall.