Retained earnings are corporate earnings that are paid as dividends to stockholders
Indicate whether the statement is true or false
FALSE
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Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and monetary base in the context of the Three-Sector-Model? a. The real risk-free interest rate falls and monetary base falls
b. The real risk-free interest rate rises and monetary base falls. c. The real risk-free interest rate and monetary base remain the same. d. The real risk-free interest rate rises and monetary base rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
A paper plant produces water pollution during the production process. If the government forces the plant to internalize the negative externality, then the
a. supply curve for paper would shift to the right. b. supply curve for paper would shift to the left. c. demand curve for paper would shift to the right. d. demand curve for paper would shift to the left.
The accompanying figure below shows a single consumer's demand for ice cream at the student union.
During a regular semester, there are 500 students on campus. Each student's weekly demand for ice cream is shown above. When the price of ice cream is $2.00 per scoop, those 500 students purchase a total of ________ scoops per week from the student union.
A. 2,500 B. 3,000 C. 2,000 D. 5,000
If the minimum points of all the possible short-run average total cost curves become successively lower as quantity of output increases, then:
A. the firm should try to produce less output. B. total fixed costs are constant along the LRAC curve. C. there are economies of scale. D. when output is doubled, total costs are doubled.