In an open economy, an increase in the government's budget deficit will ________ the domestic real interest rate and ________ the level of capital investment in the country, holding other factors constant.
A. decrease; decrease
B. decrease; increase
C. increase; increase
D. increase; decrease
Answer: D
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During a recession, the supply of bonds ________ and the supply curve shifts to the ________, everything else held constant
A) increases; left B) increases; right C) decreases; left D) decreases; right
There may be a different criterion used for the long run, but for the short run, a firm should shut down production if price is less than
a. ATC b. AR c. MC d. AVC e. AFC
The M1 measure of money includes which of the following?
A. Interest payments B. Savings account deposits C. Excess reserves D. Currency in circulation
A monopolistic competitor is in long-run equilibrium when
A) economic profits are equal to zero and the average total cost curve is tangent to the demand curve. B) economic profits are equal to zero and the marginal cost curve is tangent to the demand curve. C) economic profits are greater than zero and the average total cost curve is tangent to the demand curve. D) economic profits are greater than zero and the marginal cost curve is tangent to the demand curve.