Consider the two graphs above. Suppose there is increased concentration in the retail sector (that is, fewer, larger companies). This would ________ the desired level of inventories, as depicted in graph ________
A) increase; B
B) increase; A
C) decrease; B
D) decrease; A
D
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When net capital flows are negative,
A) capital inflows are less than capital outflows. B) net foreign investment is negative. C) capital outflows are less than capital inflows. D) A and B are both correct.
In emerging market countries, the deterioration in bank's balance sheets has more ________ effects on lending and economic activity than in advanced countries
A) negative B) positive C) affirming D) advancing
Using the long-run ISLM model, explain and demonstrate graphically the neutrality of money, for the case of an increase in the money supply
What will be an ideal response?
Refer to the graph shown. If the economy is at point D, which of the following policies is most appropriate to bring the economy to potential?
A. Increase in taxes B. Cut in government spending C. Cut in taxes D. No change in taxes or government spending