If the dollar depreciates in value relative to foreign currencies, aggregate:
A. supply and aggregate demand decrease.
B. demand decreases.
C. supply and aggregate demand increase.
D. demand increases.
Answer: D
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When the firm in the figure above maximizes its profit, it earns an economic profit of
A) $3,125. B) $6,250. C) $9,375. D) $5,625. E) None of the above answers are correct because the firm incurs an economic loss.
For a borrower, an increase in the real interest rate
A) definitely reduces current consumption and increases future consumption. B) reduces current consumption and has an uncertain effect on future consumption. C) has an uncertain effect on current consumption and increases future consumption. D) has an uncertain effect on both current and future consumption.
U.S Postal Service spending is generally not included in total government expenditures
a. True b. False
Cities and towns mainly rely for revenue on
a. property taxes. b. income taxes. c. excise taxes. d. payroll taxes.