A budget deficit will be least inflationary if the aggregate
a. demand curve is very steep.
b. demand curve is very flat.
c. supply curve is very flat.
d. supply curve is very steep.
c
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A corn-chip maker who buys September corn futures in May at the time she signs a contract with Safeway to deliver 1000 cases of corn chips each month for the next year is
A) competing against speculators, who profit from price fluctuations. B) increasing her risk from price fluctuations. C) reducing her risk from price fluctuations. D) reducing or increasing her risk from price fluctuations, depending on what subsequently happens to the price of corn.
Explain why the production possibilities frontier bows outward
What will be an ideal response?
Refer to the table below. If Gorgeous Sands Resort produces the profit-maximizing number of resorts and charges the profit-maximizing price, what is their total profit?
The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units.
A) $525,000
B) $285,700
C) $487,500
D) $300,000
Assume that the current interest rate is 7%. You invest $10,000 of your own money in a restaurant that you own and operate. The normal return on this investment is
A. $10,700, the amount invested plus the interest charge on the investment. B. $700, as that is the interest forgone by not lending the money to someone else at a 7% interest rate. C. $10,000, as that is the amount invested in the restaurant. D. $0, as you used your own money.