If the budget deficit increases then
a. saving and the interest rate rise.
b. saving rises and the interest rate falls.
c. saving falls and the interest rate rises.
d. saving and the interest rate fall.
c
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A decrease in price level will
A) shift the planned expenditures curve upward. B) cause a movement up along the planned expenditures curve. C) shift the planned expenditures curve downward. D) cause a movement down along the planned expenditures curve.
A stock market
A. guarantees that a seller of a stock will get the price at which the stock was purchased. B. is used only to sell new stock issues from corporations and not to transfer existing stocks. C. is used only to sell stocks, not to buy stocks. D. gives an individual a chance to invest in stocks without committing funds for long periods of time.
If a perfectly competitive industry were taken over by a monopoly, the monopoly would usually produce more output and charge a higher price
a. True b. False
Selling a good at a price determined by the intersection of the demand curve and the marginal cost curve is consistent with the (i) socially-optimal level of output. (ii) market solution for profit-maximizing competitive firms. (iii) market solution for a profit-maximizing monopoly
a. (i) and (ii) only b. (ii) and (iii) only c. (i) and (iii) only d. (i), (ii), and (iii)