In the income-expenditure model, the 45-degree line
A) shows total expenditures at various price levels.
B) marks all equilibrium output levels.
C) is also called the planned expenditures line.
D) is the locus of all the points for which output equals expenditures.
D
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Efforts by firms to secure patents increase the amount of competition in the affected markets
Indicate whether the statement is true or false
Suppose the demand for money becomes less sensitive to changes in the interest rate
In moving along an LM curve, an increase in income must be accompanied by a ________ change in the interest rate than before, meaning that the LM curve has become ________. A) greater, steeper B) greater, flatter C) smaller, steeper D) smaller, flatter
Which of the following is NOT a characteristic of perfectly competitive markets?
A) The government restricts the number of producers through licensing requirements. B) All market participants are price-takers. C) It is easy to find a trading partner. D) All products are identical.
Demand in the refreshment beverage market has been changing due to
A) changes in income. B) changes in taxes and subsidies. C) changes in the number of buyers. D) changes in tastes and preferences.