What is the relationship between real interest rates and investment, other things being equal?
a. No apparent relationship
b. A quadratic relationship
c. A positive relationship
d. A negative relationship
Answer: d. A negative relationship
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The firm in the figure above is in monopolistic competition. It will set a price equal to
A) $1. B) $2. C) $3. D) more than $3.
Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). Consumers are willing to pay as much as $9,000 for a good used car but only $3,000 for a lemon
Sellers of good used cars value their cars at $7,500 each and sellers of lemons value their cars at $1,500 each. Buyers cannot tell if a used car is reliable or is a lemon. Based on this information, what is the likely outcome in the market for used cars? A) Sellers of lemons will drop out of the market. B) Sellers of good used cars will drop out of the market. C) Used cars will sell for $6,000. D) Sellers of good used cars will incur losses.
Most economists believe that a zero rate of unemployment
A) is obtainable with the correct monetary policy. B) would result in a better functioning economy. C) is inconsistent with a well-functioning economy. D) is obtainable only if the inflation rate is also zero.
Based on the graph showing U.S. health care expenditures as a percentage of GDP, during which period did health care expenditures rise the most?
a. 2002 to 2006
b. 2006 to 2009
c. 2009 to 2013
d. 2013 to 2016